Whenever you invest, the key is to diversify your portfolio. Crypto markets have grown ever more extensive, and there are so many coins that you can add to your portfolio.
But how are you supposed to keep track of everything when it’s tax time, and you have used multiple exchanges with a multitude of trades? We’ve looked at CoinTracking in the past, but there is a relatively new entrant called Koinly throwing down a challenge.
Koinly was developed to keep track of crypto investments and designed to make the whole process easy and efficient. Although there are a few tools out there meant to keep track of coins, they don’t all have what Koinly offers.
One of the most common challenges crypto investors face is having to keep track of transactions from different exchanges. Every crypto exchange offers a varied array of coins, so you invariably end up signing with several of them. A large number of exchanges becomes time-consuming when you want to reconcile account balances, expenses, and transactions.
Like CoinTracking, Koinly works with many of the top crypto exchanges including BitMEX and Binance. A consolidated view to ensuring that you have access to all your accounts from one location and can filter/search through specific transactions.
Easy to generate reports for tax time
Tax season also presents a challenging time for crypto investors who need to keep track of individual transactions. Learning about tax codes and generating tax reports are not for novices. Koinly claims to have developed their tax reports in collaboration with tax consultants from KPMG to ensure the software complied with the tax laws of over 20 countries. The reports support various accounting methods, including:
- Average Cost Basis (ACB)
- First In First Out (FIFO)
- Share Pool (UK)
Finally, every investor wants to know if they are making a gain from all their investments. Trading multiple coins on several exchanges simultaneously can make profit and loss reporting (on demand) difficult. Koinly allows you to combine transactions to make it easy to follow and keeping track of all acquisitions to find the actual gains from the investment.
Koinly has been the product of a lot of research and consultation between developers, experts, and actual investors. If you are looking to replace CoinTracking with something a little more modern, especially in the area of reporting, Koinly is worth a look.