Koinly cryptocurrency tracking software

I have been trading crypto for around 7 years, and keeping manual tax records was starting to become complicated. There are too many variables such as buy/sell orders, international exchange rates, fees, airdrops, token swaps, blockchain splits, forks, rug pulls, staking, and mining.

I have tried many different types of crypto trading software and the one I have found the best was called Koinly. In fact, they have a $40 credit for new signups.

Koinly tax tracking works for most countries around the world but today we will be focussing on the Australian version.

Why I use Koinly

Last year I had over 2000 crypto transactions. Many of these transactions were airdrops and mining helium transactions. Now I am not a pro trader by any means but due to many air drops and multiple daily mining transactions, they soon add up. Keeping track of these was starting to become a nightmare.

I like that Koinly lets you add your wallet address for each token and it automatically grabs all of the transactions and works out the profit or loss.

If your crypto exchange supports an API then this can be used by Koinly to quickly grab all of your transactions rather than loading in all your wallet addresses one by one.

Even if you use a Hard wallet like Ledger Nano or Trezor Koinly will just look at the tokens inside and give you a detailed tax report. It is all totally safe and Koinly will never ask for your secret words or key.

How to Add a Wallet Address into Koinly.

How to Add a Wallet Address into Koinly.

Navigate to the wallets section and press add wallet/exchange.

This is where you can add a wallet address, exchange API, blockchain, or services.

There are many different ways to add in your favorite crypto token tracking software. It will all depend on where you store your token.

Is it on an exchange – I don’t recommend leaving your cryptocurrency on an exchange.

On a hardware or software wallet? Look for your wallet type and load it up. You can either download your transaction history and manually upload it to Koinly or Auto sync with an address. I recommend auto-sync for future transactions.

Koinly connect a wallet

Once you have added in a wallet address all that is left to do is sync and check out your tax report.

Helium / Solana migration tracking

For those of you that are mining helium, there are some issues with Koinly. Make sure to add in both the old helium address and the new Solana addresses. This will make sure you have the correct dates for and mining you have done.

Helium recently migrated over to the Solana blockchain so you will need both addresses.

If you have issues loading in the helium address in Koinly use the Solana blockchain with the old helium address.

Why pay for a detailed tax report?

Koinly summary Why pay for a detailed tax report

Koinly gives you for free a yearly report of your profit and loss. This includes capital gains, income, costs, expenses, staking, donations, and gifts.

Sure you can use this for your tax but you miss out on the 50% asset discount for any tokens held for longer than 1 year. Australia Tax Rules.

This is just an indication of your taxable gains. Download a Tax Report to see your short/long-term proceeds, cost-basis, disposals, and detailed calculations that you can use in your official tax returns.

Koinly can make it easy for your tax agent or if you do it yourself gives you the figures you need at the end of the financial year.

What tokens are supported?

I have yet to find a cryptocurrency token that is not supported. If you can trade it on an exchange then it should be supported.

Even coins that are built on the XRP ledger are supported and there are thousands. To many blockchains to mention but some of the top tokens supported are:

Bitcoin, Ethereum, Cardano, BNB, Dogecoin, XRP, Solana, Polygon, Tron, Litecoin, Polkadot, Cronos, Avalanche, Cosmos, Monero, Ethereum Classic, Steller, Bitcoin Cash, Toncoin, Filecoin, Hedera, Near protocol, VeChain, Algorand, EOS, MultiversX, Fantom, Theta Network, Tezos, Stacks, Flow, Helium, Neo, Bitcoin SV, IOTA, IOT, Dash, Flare, Songbird, NEM, Ravencoin, Chia, Solar, Terra, Kusama, Waves and many more.

Koinly Pricing

At the time of writing Koinly has pricing 4 tiers. Newbie. Holder, Trader, and Pro. Most people will fit between Newbie and Holder. Each tier lets you have a certain number of trades.

  • For the Newbie it is 100 transactions for $59 AUD
  • For the Holder its 1000 transactions for $139 AUD
  • For the Trader its 3000 transactions for $249 AUD
  • For the Pro trader, it is $389 for 10000 transactions.

So when you think about it if you do less than 100 trades in a year then it is only $59. Koinly is not a subscription so you don’t need to purchase a detailed tax report every year. Only when you have a taxable event like a sell order.

Take into account that if you sign up today to Koinly you will get a $40 credit. Makes it even cheaper.

For existing Koinly account holders check out some Koinly discount codes to help you purchase and download your detailed tax report.

Conclusion

With all the world’s governments cracking down on cryptocurrency trades, mining, staking, and airdrops it is about time you get some help with tracking your wallet trades.

Crypto is the future of money transfer and it is important to keep good records. Koinly makes it so easy that you can safely move crypto around exchanges or wallets and Koinly will only keep track of the movements. Selling, airdrops, staking, and mining will be marked as a taxable event.

Don’t forget that Koinly fees are also tax deductible.

Let me know in the comments if you have any issues with adding token addresses for Koinly and I will help you out.

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