Koinly is an online crypto tax platform that allows you to monitor all your crypto activities and generate regulatory compliant tax reports. Koinly allows you to integrate your wallets and keep track of activities including trading, mining, staking, lending, and airdrops and simplifies the process of recording all the ins and outs.
Koinly can be used to automatically import transactions, and monitors all market prices, wallet transfers, calculates your crypto gains/losses, and generates tax reports.
The platform is available in over 20 countries and integrates over 6,000 blockchains, 350 exchanges, and 75 wallets and provides a comprehensive crypto tax reporting service. The platform can be used for free with paid plans ranging from $49 to $279 per tax year.
Koinly was founded in 2018 by Robin Singh and the company retains business locations in the UK, US, Sweden, and Germany. The company operates out of retains a presence in Palo Alto, California 95124, and adheres to the laws of the State of California.
You can find out further information about the company by checking out their LinkedIn profile.
The platform is available in over 20 countries including the US, UK, Canada, Australia, and New Zealand, and allows you to import data via API, CSV files, or x/y/zpub keys and generate reports that can be downloaded as pdf files.
These include First In First Out (FIFO), and Last In First Out (LIFO) reports, Form 8949, Schedule D reports, and International tax reports, and Koinly provides a comprehensive online crypto tax auditing service that also allows users to connect with qualified tax accountants in their region.
Koinly’s Key Features
Some of the platform’s key features include:
- Multi Country Support – The platform is available to people in over 20 countries across Europe, Asia, Oceania, and the Americas. Koinly also allows users to generate localized Form 8949 and Schedule D, K4, Rf1159, and Sheet 9A tax reports.
- Extensive Service Integration – Koinly integrates with over 6,000 blockchains and supports automatic imports for Bitcoin, Ethereum, Litecoin, and NEO. It also integrates with 350 exchanges including Binance, Coinbase, Kraken, portfolio apps such as Blockfolio and Delta, and 75 wallets and allows you to easily keep track of mining, staking, and various DeFi activities.
- Easy Data Import – Koinly allows you to connect with a variety of services via API and import key data. Manual CSV file imports are also supported, as are xPub/yPub/zPub imports, and data migrations from Nexo, BlockFi, Bitmex, Deribit, and CoinTracking.
- Free Account Option – The platform can be used for free to track up to 10,000 transactions and generate capital gains tax previews. The free account can be used indefinitely to track all of your crypto trades and activities.
- Comprehensive Resources – Koinly provides a handy list of resources such as a Crypto Tax Calculator, Regional Tax Guides, a Tax Accountant list, and a Blog to keep its users up to date.
- Customer Support – The team provide a Support section, and an FAQ page that aims to address the most common queries. They can also be reached by email and live chat and run a Facebook page and Twitter account.
Which Countries Does Koinly Calculate Taxes For?
Koinly supports tax tracking and reporting for most countries, with the following nations all being supported.
- The Americas – USA, Canada
- Europe – UK, Germany, Sweden, Denmark, Finland, Norway, Netherlands, France, Spain, Italy, Austria, Lichtenstein, Ireland, Czech Republic, Estonia, Malta
- Asia – Japan, South Korea, Singapore
- Oceania – Australia, New Zealand
The team also state that a much wider range of countries that make use of a range of accountancy methods are supported, and these include countries which use:
- First In First Out (FIFO)
- Last In First Out (LIFO)
- Highest Cost
- Lowest Cost
- Average Cost Basis
- Shared Pool
In order to make sure that your country is supported by Koinly it’s best to contact the team and let them know of your specific requirements.
In addition, Koinly also generates a range of localized tax reports for different countries including:
- Form 8949 and Schedule D
- Capital gains summary for UK
- Swiss Valuation Report
- Sheet 9A
These localized reports are provided in addition to more standard reports such as:
- Complete Tax Reports – This contains includes your capital gains summary, margin gains, capital gain transactions, end of year balances, asset summary and income and can be downloaded as a PDF.
- Transaction Reports – This includes all your transactions and can be downloaded as a CSV.
- Capital Gains Reports – This is a CSV which contains all your disposals.
- Income Report – This is a CSV which contains all your income transactions including airdrops, forks, interest, and staking rewards.
- Gifts, Donations & Lost Asset Reports – This is a CSV which contains any transactions tagged as a Gift, Donation or Lost.
- Expense Reports – This CSV contains all transactions tagged as a Cost. However, this doesn’t include your trading fees which have already been accounted for in the capital gains report.
- End of Year Holdings Reports – This CSV contains your holdings at the end of the tax year.
- Turbotax Reports – This is a CSV that contains your transactions in a format that can be imported into the Turbotax tax software.
How to Get Started on Koinly
Signing up is pretty straightforward, and the main website displays a”Sign up” button at the top right of the page.
- You can sign up by using a Coinbase or Google account of by entering an email address and password combination.
- You can also choose to set your location for tax tracking or just opt to track your portfolio.
- From here you can access the main dashboard and add your exchange accounts and wallets.
- You can adjust your account as you like to include the correct tax reporting information for your jurisdiction from the “Settings” tab.
Koinly Exchange, Wallet, and Service Support
Koinly integrates with a wide range of popular crypto services and allows you to keep track of your activities on over 6,000 different blockchains, 350 exchanges, and 75 wallets.
You can also use the platform to keep track of you portfolios by linking your Blockfolio, Delta, and CoinTracking accounts.
Koinly also supports automatic import for 14 blockchains including Bitcoin, Ethereum, Litecoin, NEO, and EOS with over 6000 cryptocurrencies being supported via CSV import and manual entry.
Koinly Price Plans
The platform provides a range of plans designed to cater for crypto traders of differing activity levels.
- Koinly also has a Free plan that can be used extensively and allows anyone to track their trades/transactions, exchange and wallet accounts, and to also obtain a capital gains tax preview. The Free account also provides access to FIFO and LIFO tax reports and allows you to import data from a wide range of sources and contact the team via live chat and email.
- The Hodler account costs $49 per tax year and allows you to generate FIFO and LIFO tax reports as well as international tax reports, comprehensive audit reports, and Form 8949 and Schedule D reports. You can also export to TurboTax, and TaxACT, however, you are limited to 100 transactions.
- The Trader account costs $99 per tax year and provides access to a similar range of features and increases your transaction limit to 1000. When committing to this plan you also gain access to priority support.
- The Oracle account costs $179 per tax year for 3000 transactions and $279 for 10,000 transactions. The Oracle plan provides access to the full range of features available on Koinly. This includes access to priority support, and the ability to generate custom reports. This plan also gains extra assistance from the support team who will perform bulk actions and process custom files without manual charges.
The platform provides access to a comprehensive range of features and all plans currently include tax reports for the last five years of your crypto activity.
To get a better idea of all the options available, you can check out the team’s full price list here.
How Safe is Koinly?
The team prioritize customer trust and the safety of user data and employ a number of security protocols designed to guard against any exploits or breaches.
Most importantly, Koinly does not require your private keys or gain access to any funds held on your exchange accounts. However, as it connects with your accounts via API, it’s always a good idea to disable the ability to withdraw and trade when configuring your API connections.
All API/blockchain keys are encrypted using aes-256-gcm before being stored, and the website is completely served over https with all data sent to or from Koinly also being encrypted using 256 bit encryption.
Koinly also makes use of Amazon Web Services (AWS), and Heroku for data storage and hosting. AWS is an industry leader in providing secure hosting, and Heroku is a secure cloud application platform that isolates customer applications and data.
The platform applies security controls at every layer from physical to application, and applies security updates without any customer interaction or service interruption. This helps Koinly to have an uptime of 99.9% with any planned downtime being announced in advance.
Koinly allows user to sign up and authenticate via Google/Coinbase which does away with some of the need to store passwords, and anyone signing up via email has their passwords stored using bcrypt. The team also continuously scan for vulnerabilities and make sure to limit data access to only authorized employees.
In short, the platform incorporates a good number of industry standard security protocols and the team also elaborate on their security here. As ever, keeping your own personal data safe and remaining sensible with your info will also go a long way to protecting you from any data breaches.
Is Koinly Suitable for Beginners?
The platform is primarily aimed at people already actively engaged in various crypto related activities including trading, investing, mining, staking, and lending. As a result, Koinly may not be directed at people just starting their crypto journey.
However, the platform is useful for crypto enthusiasts of all experience levels and allows anyone entering the sector now to keep track of their activities from day one. It’s also worth noting that Koinly allows you to track your trades and transactions from the last five years which allows more experienced traders to go back and easily report what they have done.
The platform is quite comprehensive in its scope and links with all the leading exchanges, wallet providers, and blockchains. It also allows you to easily generate a range of reports including capital gains reports, income/transaction reports, end of year reports, and complete tax reports that many people are interested in creating.
The resource section helps to educate users, and the crypto tax guides are a handy way of keeping up to date with what’s happening in your jurisdiction. The localized tax reports also come in handy and error reconciliation features such as auto balance verification, and negative balance warnings help anyone not too familiar with doing their taxes.
More active crypto enthusiasts may have to look into the benefits of the Oracle plan which allows for custom reports, live chat support, and a high level of transactions to be tracked. These features combine to provide a more bespoke service that would suit high frequency traders while the free plan lets less active enthusiasts to easily keep track of all their accounts.
Koinly is a viable option for anyone in a supported region looking for a way to keep track of their crypto activities in order to file tax reports. The web based platform is relatively easy to use, and allows you to quickly link up your exchange accounts and wallet addresses and monitor your activities.
The platform integrates with a wide range of crypto service providers, and covers its core activities well. The service provided helps to streamline keeping track of all your transactions and take away the headache of staying on top of all your operations.
The service is quite well priced, although there is no option to pay in crypto, and the company is still developing having only been around since 2018.
However, the free account option allows anyone to sign up and test out the platform and gauge how accurately it helps you to monitor all your transactions.
All in all, Koinly provides a service aimed at an emerging crypto sector, and the ability to keep track of all your crypto activities will appeal to anyone looking to remain financially compliant and make sure that they can “cash out” or move between crypto and fiat with the minimum of headaches.
The post Koinly Review: Cryptocurrency Tax Software for Automatic Tax Reports appeared first on Blockonomi.
Market Wrap: Bitcoin Bounces to $11.8K; Over 10K BTC Locked in Harvest Finance
Bitcoin traders hit the buy button Monday while a DeFi project gains $135 million in BTC locked since the start of September.
- Bitcoin (BTC) trading around $11,689 as of 20:00 UTC (4 p.m. ET). Gaining 2.2% over the previous 24 hours.
- Bitcoin’s 24-hour range: $11,409-$11,839
- BTC above its 10-day and 50-day moving averages, a bullish signal for market technicians.
Bitcoin’s price is making major gains Monday, with a rally starting around 12:00 UTC (8 a.m. ET) and the price jumping from $11,477 to as high as $11,839 on spot exchanges such as Bitstamp within hours. Since then, the price has settled around $11,689 as of press time.
Katie Stockton, a technical analyst for Fairlead Strategies, said bitcoin began a bullish run on Oct. 18, when the price per one BTC began trending above a key moving average. “Bitcoin has been consolidating since breaking out above its 50-day moving average,” Stockton told CoinDesk.
“Short-term momentum remains to the upside within the intermediate-term uptrend, suggesting the consolidation phase will give way to a test of August’s high,” she added.
The record price level for 2020 so far occurred Aug. 17, with bitcoin hitting $12,476 on spot exchange Bitstamp.
While bitcoin trading volumes and transactions have been quiet as of late, momentum, in the form of bitcoin spot volume, has been higher than usual Monday. Volumes on major USD/BTC are at $473,739,764 Monday, already higher than the past month daily average of $348,110,579.
John Willock, CEO of crypto asset manager Tritum, said he sees bitcoin’s price passing $12,000 again soon. “Definitely $12,000 is easily in sight,” he said. “The potential for U.S. fiscal stimulus that is broadly anticipated is likely to result in more price surges in haven/hedge assets like bitcoin and gold.”
Constantin Kogan, partner at crypto fund-of-funds BitBull Capital, noted a low in bitcoin miner revenue from fees. “The share of miners’ revenues from transaction processing fees fell to a three-month low of 3.49% over the weekend,” he said.
Indeed, miners’ revenues from fees was the lowest point for that metric since July 12, when it dropped to 2.52%. Some of that can be attributed to low volatility and transactions being processed on the Bitcoin network, according to Kogan.
On Oct. 18, 231,437 transactions were processed on the network, a 40% fall from July 1, when 382,408 transactions were recorded. “Revenues of BTC miners have fallen amid low market volatility,” Kogan noted.
Investors plow BTC into Harvest Finance on Ethereum
Ether (ETH), the second-largest cryptocurrency by market capitalization, was up Monday trading around $379 and climbing 1% in 24 hours as of 20:00 UTC (4:00 p.m. ET).
The decentralized finance, or DeFi, space is still attracting bitcoiners looking to increase profits. The project Harvest Finance, which allows users to deploy crypto automatically to popular DeFi projects, has gone from almost zero BTC in early September to surpass 10,000 BTC Sunday.
Total BTC locked in Harvest Finance Monday as of press time was 11,479 BTC, $135,394,805 at current prices and nearly $348 million in total assets locked.
When asked about the bitcoin being parked in protocols like Harvest Finance, Brian Mosoff, chief executive officer of investment firm Ether Capital, remarked on the lower volatility and the potentially lower trading returns for bitcoin versus ether.
“Bitcoin has lower volatility than ETH so it also may be ‘safer’ to put it into DeFi, and this may be another contributing factor,” Mosoff said.
Digital assets on the CoinDesk 20 are mostly green Monday. Notable winners as of 20:00 UTC (4:00 p.m. ET):
Notable losers as of 20:00 UTC (4:00 p.m. ET):
- Oil was down 0.29%. Price per barrel of West Texas Intermediate crude: $40.62.
- Gold was in the green 0.18% and at $1,901 as of press time.
- U.S. Treasury bond yields were mixed Monday. Yields, which move in the opposite direction as price, were up most on the 10-year, jumping to 0.762 and in the green 1.3%.
ETH Price Analysis: Ethereum’s Sideways Action To End At $400 Or $360 First?
ETH/USD – Bulls Defend Support at 2019 Highs
Key Support Levels: $364, $355, $346.
Key Resistance Levels: $380, $396, $400.
Last week, Etheruem had surged as high as $396 as it hit the resistance provided by a bearish .5 Fib Retracement level. Over the week, Ethereum started to head lower from here as it broke beneath $376 to reach the support at the 2019 High at $364 on Friday.
ETH bounced higher over the weekend as it reached as high as $380. However, the coin is now facing short term resistance at a falling trend line and must overcome this level to continue higher toward $400.
It’s worth noting that the cryptocurrency is trapped in a range and it’s unable to break from it for the time being.
ETH-USD Short Term Price Prediction
Looking ahead, if the buyers manage to break the trend line and head above $380, the first level of resistance lies at $396 (bearish .5 Fib). This is closely followed by resistance at $400. Beyond $400, additional resistance lies at $410 and $416 (bearish .618 Fib).
On the other side, if the sellers push beneath $375, the first level of support lies at $364 (2019 Highs). Beneath this, support lies at $355, $346 (100-days EMA), and $336.
ETH/BTC – ETH Trading Inside Consolidation Pattern.
Key Support Levels: 0.032 BTC, 0.0315 BTC, 0.0311 BTC.
Key Resistance Levels: 0.0337 BTC, 0.034 BTC, 0.0347 BTC.
Against Bitcoin, Ethereum is currently trading within a symmetrical triangle pattern that started in the first week of September. Each time the bulls attempt to push above the triangle, they are rejected by the upper boundary and head lower.
Last week, they tried to push above 0.0337 BTC (March 2019 Support – now resistance) but failed to follow through. As a result, they headed into the lower boundary, where the market rebounded over the weekend to reach the current 0.0327 BTC level.
ETH-BTC Short Term Price Prediction
Looking ahead, if the buyers can break the upper boundary, the first level of resistance lies at 0.0337 BTC. Above this, resistance is expected at 0.034 BTC, 0.0347 BTC, and 0.0352 BTC.
On the other side, the first level of support lies at the lower boundary of the triangle. Beneath this, support lies at 0.032 BTC (100-days EMA), 0.0315 BTC, and 0.0311 BTC (.618 Fib Retracement).
The RSI is at the mid-line, which shows the market is in a state of indecision. For a break above the triangle, the RSI must break the mid-line to show bullish momentum within the market.
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Bitcoin Price Has Only Ever Spent 93 Days Above $11,500
With Bitcoin’s price hovering around $11,500, recent data indicated that the asset had spent only about three months of its existence above that particular level.
BTC: Only Three Months Above $11.5K
The official launch of the first-ever cryptocurrency came in early January 2009. Born during the last massive financial crisis, Bitcoin was this “magical money” that actually lacked any significant attention in its initial years. Consequently, its price traded close to zero for a while.
Since then, however, Bitcoin started gaining traction that ultimately resulted in severe volatility throughout the years. The massive fluctuations took the asset towards an all-time high in December 2017 of nearly $20,000, and just a year later, BTC saw its price beneath $4,000.
Fast-forwarding two years and Bitcoin is currently positioned around $11,500. Although this level is nearly twice as less as the all-time high, recent data from the analytics company Skew informed that BTC hadn’t spent a lot of time above $11,500.
More precisely, BTC’s price has hovered above $11,500 for only 93 days (or three months) since January 2009.
Fundamentals in Place
Apart from the data above, Bitcoin’s hash rate has experienced a significant boost even after the completion of the third halving in May. As CryptoPotato reported recently, the metric measuring the computing power miners use to validate transactions on the BTC blockchain reached a new all-time high of 170 exahashes per second. This represented a 40% increase in the five months following the halving.
Although the hash rate is not correlated with the price, another report suggested an upcoming price increase. By indicating that Bitcoin whales, meaning entities with at least 1,000 coins, have slowed down accumulation, Glassnode asserted that this could ultimately be a bullish sign for the asset price.
Historically, once whales have stopped buying massive quantities, this has led to an opportunity for retail investors. According to the analytics company, Bitcoin may be in the “beginning of a run-up to a market top.”
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