Finding a decent tool or service that helps you stay on top of your tax requirements is one of the most crucial things you can do if you’re investing in cryptocurrencies. Without one, you run the risk of paying more than you should or failing to file at all.
Both the widely used cryptocurrency tax calculators Koinly and Cointracking offer comparable functionality and cost. Thus, to make things simpler, this article will get you through CoinTracking vs Koinly, comparing all of the features and fees of both crypto tax software.
Table of Contents
|Platforms Supported||SaaS / Web, iPhone, Android||SaaS / Web|
|Pricing||Free version and free trial available||Free Version AvailableNo free trial|
CoinTracking vs Koinly: Introduction
What is CoinTracking?
CoinTracking is a cryptocurrency portfolio and tax management platform that helps users track their cryptocurrency investments and calculate their tax liabilities.
The platform is designed to support a wide range of cryptocurrencies and exchanges and offers a range of tools to help users manage their portfolios, generate reports, and file their taxes.
In addition, one of the key features of CoinTracking is its ability to automatically import transaction data from over 70 cryptocurrency exchanges and other platforms, making it easy for users to track their investments and generate reports.
CoinTracking also provides a variety of reports, including capital gains and losses reports, income reports, and other tax-related reports, to help users calculate their tax liabilities.
What is Koinly?
Koinly is a cryptocurrency tax software platform that helps users calculate and file their cryptocurrency taxes.
The platform is designed to simplify the process of tracking cryptocurrency transactions and generating tax reports for users in multiple countries.
Further, the Koinly platform offers a range of features to help users manage their crypto tax reporting, including automatic data imports from popular cryptocurrency exchanges, cost basis calculations, capital gains and losses reporting, and more.
Moreover, The platform generates tax reports in a format that is compliant with the tax laws of each country, making it easy for users to file their taxes accurately and efficiently.
CoinTracking vs Koinly: Features
CoinTracking offers a variety of features to help users manage their cryptocurrency investments and tax reporting, including:
- Portfolio Tracking: CoinTracking allows users to track their cryptocurrency investments across multiple exchanges and wallets, providing a comprehensive view of their portfolio performance.
- Tax Reporting: CoinTracking generates capital gains and losses reports, income reports, and other tax-related reports for users to help them calculate their tax liabilities.
- Automated Imports: CoinTracking can automatically import transaction data from over 70 exchanges and other platforms, making it easy for users to keep track of their cryptocurrency transactions.
- Performance Tracking: CoinTracking provides detailed performance tracking and analytics tools, allowing users to monitor their portfolio performance over time.
- Alerts and Notifications: CoinTracking offers alerts and notifications to help users stay informed about changes in their portfolio, including price movements and other important events.
Koinly offers a range of features to help users manage their cryptocurrency tax reporting, including:
- Automatic Data Imports: Koinly can automatically import transaction data from popular cryptocurrency exchanges, wallets, and other platforms, making it easy for users to track their crypto transactions.
- Cost Basis Calculations: Koinly calculates the cost basis of each transaction using the FIFO (First-In, First-Out) method or other tax-specific methods, which is important for calculating capital gains and losses.
- Capital Gains and Losses Reporting: Koinly generates capital gains and losses reports for each tax year, which users can use to file their taxes accurately and efficiently.
- Tax Optimization: Koinly can identify opportunities for tax optimization, such as harvesting tax losses, to help users minimize their tax liability.
- Audit Trail: Koinly provides an audit trail for all transactions, making it easy for users to track their cryptocurrency activities and identify any potential issues.
CoinTracking vs Koinly: Pricing
CoinTracking offers a discount on its Pro and Unlimited plans for users who pay with its native cryptocurrency, CoinTracking Credits (CTC). The discount ranges from 10% for the Pro plan to 20% for the Unlimited plan.
It’s important to note that CoinTracking’s pricing is based on a lifetime license, which means users pay only once for access to the platform’s features and updates. There are no additional charges for future tax years or additional features.
All plans include automatic data imports, cost basis calculations, capital gains and losses reporting, multi-currency support, tax optimization, and a user-friendly interface. The main difference between the plans is the number of transactions that can be processed per year.
It’s important to note that Koinly’s pricing is based on a per-tax-year basis, which means users will need to purchase a new plan for each tax year they want to report on.
CoinTracking vs Koinly: Security
Is CoinTracking safe?
Yes, CoinTracking is safe to use and has taken several steps to ensure the security of its users’ data and funds.
First, the platform uses bank-level security measures, including encryption and two-factor authentication, to protect user data. CoinTracking also employs various security features, such as IP blocking, to prevent unauthorized access to user accounts.
Second, CoinTracking does not store users’ cryptocurrency funds. Instead, the platform only has access to users’ transaction data, which is stored securely on CoinTracking’s servers.
Third, CoinTracking has been in operation since 2012 and has built a reputation for being a reliable and trustworthy platform. The platform has over 700,000 users in more than 200 countries and has processed over 1 billion transactions.
Is Koinly safe?
Yes, Koinly is a safe and secure platform. It uses bank-level encryption to protect users’ data and transactions.
All data transferred between Koinly’s servers and the user’s browser is encrypted with SSL/TLS. Also, users can enable 2FA on their accounts to add an extra layer of security to their login process.
Further, Koinly blocks suspicious IP addresses to prevent unauthorized access to user accounts and is committed to protecting user privacy, and does not share user data with third parties without explicit consent.
Moreover, ongoing security updates: Koinly regularly updates its security protocols to stay ahead of potential threats and vulnerabilities.
Koinly and CoinTracking are two popular crypto tax software options, and while they offer similar features, there are some differences to consider when choosing between them. Here are some of the key differences:
|User Interface||Complex and Overwhelming||User-friendly and Streamlined|
|Tax Reports||CoinTracking also offers tax reports, but they are more complex and may take some time to fully understand.||Koinly offers tax reports that are easy to understand and can be directly exported to popular tax filings software like TurboTax or TaxAct.|
|Pricing||CoinTracking’s pricing is based on the number of trades you need to analyze.||Koinly’s pricing is based on the number of transactions you need to import.|
Ultimately, the choice between Koinly and CoinTracking will depend on your specific needs and preferences. If you are primarily concerned with accurate tax reporting and a simple user interface, Koinly may be the better option.
However, if you need a more comprehensive tool for tracking and analyzing crypto transactions, CoinTracking may be the better fit.
Frequently Asked Questions
Does Koinly platform accept cryptocurrencies for payment?
Koinly only accepts BTC, ETH, DAI, and USDC to purchase their plans.