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Koinly Review: Helping You Manage and Calculate Your Crypto Taxes

Koinly is an online platform for calculating your crypto taxes and tracking your portfolio. As it supports more than 100 countries, Koinly allows people from all around the world to generate their crypto tax reports. Crypto taxes have become a hot topic recently, with the IRS, HMRC, and other tax authorities cracking down on crypto […]

Koinly Review: Helping You Manage and Calculate Your Crypto Taxes was originally found on Blokt – Privacy, Tech, Bitcoin, Blockchain & Cryptocurrency.

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Koinly is an online platform for calculating your crypto taxes and tracking your portfolio. As it supports more than 100 countries, Koinly allows people from all around the world to generate their crypto tax reports.

Crypto taxes have become a hot topic recently, with the IRS, HMRC, and other tax authorities cracking down on crypto traders with unpaid taxes. Crypto taxes are not something that can just be ignored and must be taken seriously to avoid repercussions later.

As crypto moves from its wild west phase towards global mainstream adoption, it makes sense to have a system for managing your taxes in place now ready for the years ahead. Koinly wants to be the platform that allows you to do this in the most efficient way.

In this review, I’ll take an in-depth look at Koinly and its different features to provide you with a complete rundown of this cryptocurrency tax management platform.

Importing Your Data

In order to calculate your crypto taxes accurately, you will need the data of all your crypto transactions and their associated fees.

Koinly allows you to import your data from more than 300 exchanges, 68 wallets, 6000 blockchains, and various other platforms, so gathering all of the necessary data together shouldn’t be a problem.

Adding wallets to Koinly

Even if you use a service that is not integrated with Koinly, you can download your transactions in an Excel or CSV format, and Koinly will help you import the file.

Once you have connected your data sources via their API keys or public addresses, your data will then automatically sync with Koinly when you make any future transactions.

Koinly has made this whole process extremely easy, allowing you to connect the exchanges, wallets, and other crypto services you use in minutes.

Generating Tax Reports

Koinly collaborated with expert tax consultants from KPMG during its development to ensure that the reports generated are compliant with relevant tax laws. The platform allows users to generate tax reports for countries that accept LIFO, FIFO, and Average Cost accounting methods, which is almost every country.

Capital gains reports can be made using more than 5 years of historical market data for 6000+ fiat and digital currencies. You can also use the income from staking, mining, and loans to generate reports, as well as account for gifted, donated, and lost coins.

Tax Reporting – Source: Shutterstock.com

If you are ever audited, Koinly will provide you the fully compliant transaction logs you need and cost-basis calculations. It also allows you to export your data from Koinly to other tax filing systems, such as Xero, TurboTax, and TaxAct.

By being able to easily import and review all of your crypto transactions on Koinly, it allows users to save hours of time and dramatically reduces the risk of errors when calculating tax reports. Koinly notifies you if transactions still need to be reviewed, or if something does not seem right with a transaction, like a negative balance, for example, helping to ensure accuracy.

Koinly also has a built-in chat feature that allows you to drop them a message if you ever need help with anything related to the platform or your taxes.

On top of being a user-friendly tax calculator, Koinly also has a built-in portfolio tracker that has features designed to help users reduce their tax bills. This includes insights on how trades can affect your taxes before making them and notifying users of tax-loss harvesting opportunities.

A Closer Look at Koinly’s Portfolio Tracker

Aside from the tax benefits that Koinly’s portfolio tracker can bring, it also allows you to visualize your complete crypto portfolio, spread across multiple exchanges and services, all in one place.

Koinly Dashboard

It provides you a breakdown of your holdings and the ROI for each. You can see how the total value of your portfolio has increased and decreased over time, the amount you have spent on fees, your realized profit/loss, your cash positions, and more.

These insights are very valuable for crypto traders and investors, allowing them to analyze their trading habits, spot potential pitfalls, and improve their edge in the market.

Koinly’s Pricing

Koinly’s pricing seems quite reasonable, considering how much time and hassle the platform can save you. And the other thing is, you only have to pay for Koinly when you are ready to generate your tax report. That means you can create an account, upload your data, review your transactions, track your portfolio, and more, all for free.

When you are ready to generate your tax report, payment can be made by credit/debit card and is priced as follows:

Koinly Pricing
Note: If you have more than 10,000 transactions per year, then Koinly can still accommodate you. You can contact them for the cost of more transactions, but in most cases, this additional fee will be waved.

Creating an Account

Creating an account for Koinly is quick and easy. You can either log in with your existing Coinbase or Google account, or create a new Koinly account by entering just a name, email, and password.

Creating an account on Koinly

A bonus to using your Coinbase account is that all of your Coinbase transaction data will then automatically sync with Koinly.

Final Thoughts

Koinly does exactly what it sets out to achieve, which is to help you manage your crypto taxes simply, quickly, and professionally. Koinly is even in the process of setting up a CPA suite for cryptocurrency accountants and firms to allow them to manage their clients more efficiently.

Final Thoughts

The platform goes beyond taxes with its portfolio tracker and trading analytics tools. The pricing is fair, considering the time it saves you and the professional and compliant tax reports it produces. On top of that, Koinly’s experienced support team is always on stand by to help you with any issues or queries that may arise.

Overall, Koinly is a solid choice as a tax management platform for crypto traders, investors, and enthusiasts all around the world.

References

Koinly Review: Helping You Manage and Calculate Your Crypto Taxes was originally found on Blokt – Privacy, Tech, Bitcoin, Blockchain & Cryptocurrency.

Source: https://blokt.com/guides/koinly-review

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Analysis: Current Bitcoin Rise Due To New Money Entering Crypto (And Not Altcoins Sell Off)

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Bitcoin is enjoying several consecutive bullish days, resulting in a break above $12,000. The movement may surprise some. A few days ago, news broke that the popular cryptocurrency exchange OKEx had suspended withdrawals after reports emerged that its founder was taken away by the police.

In early October, the owners of another large platform, namely BitMEX, were charged by the US CFTC with illegally operating a derivatives exchange.

Similar developments typically lead to adverse consequences for the cryptocurrency market. Although Bitcoin’s price indeed dipped briefly, the asset recovered swiftly. Moreover, it actually started accelerating.

On October 2nd, when the BitMEX news came out, BTC slumped to $10,400. With its price set above $12,200, this represents a 17% increase in less than three weeks. Since last Friday alone, when the OKEx events transpired, Bitcoin has gained about $1,000 of value.

Apart from building optimism within the community that a new 2020 high of above $12,500 is coming, BTC’s impressive performance raised questions about the nature of the funds going into Bitcoin.

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New Capital Enters

Popular cryptocurrency commentator Alex Saunders published a graphic on the matter called “Crypto Market Cycle Capital Flows.”

Crypto Market Cycle Capital Flows. Source: Twitter
Crypto Market Cycle Capital Flows. Source: Twitter

Saunders specified that the blue represented the entire cryptocurrency market cap, the black – BTC’s market cap, and the orange was the cumulative market cap of all alternative coins.

He outlined several periods when Bitcoin’s performance contrasted altcoins. This implies that when BTC was heading up, investors were swapping their altcoin positions for more significant exposure to Bitcoin and vice-versa.

However, the latest price increase for the primary cryptocurrency doesn’t fall under the same category. Saunders concluded that the data he collected “suggests the capital entering Bitcoin is new money rather than a rotation from Altcoins.”

Alternative Coins Stay Still

By examining the price performance of the altcoin market, one could see merit in his words. Although some alts have lost value lately, most have remained relatively stable.

On a weekly scale, Ethereum has lost less than 1%, while Ripple has dropped by about 2%, according to data from CoinMarketCap.

The altcoin market cap hovered around $148 billion a week ago and is slightly down to $147 billion now. The monthly scale even sees an increase from about $135 billion.

Altcoin Market Cap. Source: CoinMarketCap
Altcoin Market Cap. Source: CoinMarketCap
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Source: https://cryptopotato.com/analysis-current-bitcoin-rise-due-to-new-money-entering-crypto-and-not-altcoins-sell-off/

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Cardano Prepares To Break Out As Investors Watch In Disbelief

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Cardano prepares to break out as the sentiment around it creates a valuable profit opportunity while remaining dormant as the price action gets capped by the 200 and 50-hour moving averages as we are reading further in our Cardano coin news.

The on-chain metrics show that Cardano prepares to break out above the resistance level which will not be easy. The current state of the disbelief of the ADA traders could be a positive sign from the counter sentiment perspective as Cardano is going through a stagnation phase and the rest of the market aims for higher highs. As the investors shift their attention to pumping coins, ADA will go higher and will make a breakout again.

adausd
ADAUSD on TradingView

Cardano has been stuck in the 200 and 50-twelve hour moving averages so these critical hurdles have limited the price action to a smaller trading range that is getting even narrower time after time. ADA’s inability to bust through the support and resistance makes this area a no-trading zone. With Bitcoin’s impressive rally at $13,000, it is safe to assume that a breakout will soon happen but the IOMAP model shows that moving past this resistance will not be easy. Based on the on-chain metrics, about 5,200 addresses previously purchased 2 billion ADA coins between $0.11 and $0.113 so with an impressive rally like this one, a barrier could have the ability to keep the rising prices at bay. Holders in this price range will try to exit the previously recorded underwater positions which will push the prices back down.

iomap
InOut of the Money Around Price by IntoTheBlock

Because of the heavy resistance ahead, the long-term sentiment around Cardano was pessimistic. Most of the market participants believe that ADA will not create a strong enough buying pressure to break out. they seem to be waiting to catch long positions at lower prices. Going against the wider opinion proves to be a profitable strategy especially in the crypto market. From a counter sentiment perspective, this state of disbelief is bullish as the odds for another breakout that will get the traders behind their backs increases drastically.

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If Cardano manages to turn the $0.11 and $0.113 resistance into support, the IOMAP model shows no bearish traps ahead that will prevent it from rising more towards $0.13. it is also worth mentioning that if the overhead resistance rejects more upward price action, the $0.1 level could act as stiff support. More than 18,000 addresses already hold 2.5 billion ADA according to IntoTheBlock’s IOMAP model.

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]

Source: https://www.dcforecasts.com/cardano-news/cardano-prepares-to-break-out-as-investors-watch-in-disbelief/

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Bitcoin Price Moons to New 2020 Highs on PayPal News

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Newfound bullish momentum is omnipresent with Bitcoin’s price throughout the last few days. The cryptocurrency has increased by more than $2,000 since October 6th, and it shows no signs of slowing down.

Bitcoin Price Breaks 2020 Highs on PayPal News

Throughout the entire month of September, Bitcoin’s price was somewhat stagnant, with a few minor exceptions. This became a cause for increasing worries among cryptocurrency analysts and traders, many of whom were worried that the price would head lower and fill the (still) unfilled CME gap down at $9,600.

All of this changed on October 6th when BTC started its ascend. Since then, the price has increased by more than $2,000, with the momentum culminating today on some major news coming from PayPal.

The world’s largest online payment processor announced that it would enable its customers to buy, sell, and store Bitcoin and other cryptocurrencies as soon as the “coming weeks” for US-based accounts and the first half of 2021 for other countries.

Naturally, the market reacted in a positive way. Today, Bitcoin’s price has surged from a low of around $11,910 to a high of $12,888 on Binance Futures, before retracing to where it’s currently trading at $11,750. With this sudden move, Bitcoin broke the previous 2020 high marked on August 17th when the price reached almost $12,500.

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btcusd_Chart
BTC/USD. Source: TradingView

The Rest of the Market Stalls Against BTC

Somewhat expectedly, altcoins are bleeding heavily against Bitcoin. The market dominance of the world’s leading cryptocurrency is increasing aggressively over the past few days, as it’s now sitting at 61.%, up about 3% in the last month.

BTC_dominance_chart-min
Bitcoin Dominance. Source: CoinMarketCap

As CryptoPotato reported yesterday, BTC’s market dominance is sitting on a 2-month high, while altcoins are already feeling the pressure.

Moreover, a recent analysis indicated that the latest increase in the price of Bitcoin comes from fresh capital, and it’s not a rotation of funds from alts. This shows that the new money entering the space goes into Bitcoin, rather than alternative cryptocurrencies.

On an entirely positive note, it’s worth mentioning that this seems to be a news-driven event. The fact is, however, that PayPal still hasn’t allowed its users to buy Bitcoin, meaning that there might be more positive developments once the feature is rolled into the platform’s services. Moreover, the company has also stated that it will push for the adoption of using digital assets with its vast merchant network in the following year.

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Source: https://cryptopotato.com/bitcoin-price-skyrockets-to-new-2020-highs-on-paypal-news/

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