Before CoinTracking went online in 2013, crypto traders had to use custom-made spreadsheets to keep track of their transactions if they wanted to stay on top of their taxes.
CoinTracking reduces this paperwork burden through the use of automation. The tax software automatically downloads traders’ transactions from their exchanges. Then, it generates concise and easy-to-read tax reports that explain how much is owed.
Portfolio management is another key use case for the software. Professional traders that use multiple crypto exchanges rely on CoinTracking to visualize the status of their funds across all their accounts. Similarly, fund managers and tax professionals use CoinTracking to set up profiles for each of their clients.
Table of Contents
- CoinTracking is serving customers from 2013
- Highly reliable tax software
- Provide CPA’s and EP’s
- Automatic exchange and blockchain import
- Manage Portfolio across multiple exchanges
- Provide charts and reporting and analytics
Pros and Cons
One of the best things about CoinTracking is its reliability. The development team works to ensure that CoinTracking stays current with changes that crypto exchanges implement. Exchanges are constantly adding new features, tweaking their fee structure, and changing their APIs.
Other cryptocurrency tax software companies don’t do a good job of keeping up with these changes and as a result, they aren’t as stable.
In addition, no other crypto tax software offers the portfolio management features that CoinTracking provides. CoinTracking also scores high marks when it comes to Exchange compatibility, trading charts features, and ease of use. Another plus is that CoinTracking offers a free plan for casual crypto traders.
CoinTracking’s main downside is that you need a paid account to use the API import feature. That means that if you use an exchange that doesn’t have a CSV export feature– like bithumb, for example– you’ll need to upgrade to do your taxes. However, the majority of the top exchanges offer both API and CSV export support.
- Supports over 70 exchanges. The list of compatible exchanges includes not only market leaders like Coinbase and Binance but also defunct exchanges like Mt. Gox, Cryptopia and QuadrigaCX.
- Automatic exchange syncs. You can link all your exchanges via API so that all your trading data gets sent to your CoinTracking account automatically every day.
- Tax professional network. CoinTracking’s US-based CPAs and EAs can help you sort out IRS-related tax issues.
- Blockchain imports. Instead of linking an exchange account, you can import data directly from your cryptocurrency wallet.
- Responsive technical support. When exchanges release changes and updates, CoinTracking’s developers make adjustments that allow their users to continue using its services.
- Advanced analytics. CoinTracking recently partnered with analytics firms IntoTheBlock and Cryptosheets to bring its users expanded chart features.
- Instantly view balances across multiple exchanges. Even the free subscription plan lets you link an unlimited number of exchanges.
- Clean security track record. Even if a hacker somehow broke into your CoinTracking account, they couldn’t use it to place trades or initiate withdrawals because CoinTracking strictly limits the use of read-only API keys. The optional 2-factor login feature provides additional security.
How to use Cointracking for Taxes
Step 1: Account creation
After you create an account, you’ll be automatically enrolled in CoinTracking Free. All you have to do is supply a user name, password and an email address. CoinTracking Free is limited to 200 transactions. You can upgrade as needed to Pro, Expert or Unlimited for more transactions, API imports and other advanced features.
Step 2: Import your transaction data
There are two ways to import your data: manually via CSV files or automatically through the use of API synchronization. Drop down menus found on the top of the CoinTracking website walk you through wizards that explain the specific steps you need to take.
- CSV files. CSV is short for Comma Separated Values. Almost all crypto exchanges provide some type of CSV export option. You can find information about how to export data from various exchanges on CoinTracking’s support site.
- API sync. Paid users can connect their exchanges to their CoinTracking account by setting up API connections for each of them. Once linked, transaction data is synced automatically once a day. The process for creating an API link varies depending on the exchange. Information on this is available on the CoinTracking website and their support team will help you if you need assistance.
Step 3: Create your tax report
After you’ve imported all your data, you can create tax reports. Select Tax Report from the main menu, then click the red Open settings and create a new Tax Report button. This will bring up the “Create a new Tax Report” page:
The Tax year field gives you the ability to create tax reports for prior tax years if you need to do so. The Filter function is useful for troubleshooting if you receive unexpected results because it lets you filter out various transaction types. The Advanced settings let you do things like calculate margin trades and change the way that transitions are grouped. You can choose from various cost basis accounting methods, as well.
CoinTracking – Comparison with other products
One of CoinTracking’s biggest advantages over other crypto tax software products is its reliability. Other software-based crypto tax products don’t receive regular updates and this is why they often generate errors or don’t work as expected.
Exchange compatibility is another strong point. Some cryptocurrency tax calculators don’t integrate with exchange APIs at all and those that do only support 10-15 exchanges. Currently, CoinTracking supports 36 exchange APIs.
CoinTracking’s new analytical features are a nice bonus as well. The IntoTheBlock-powered charts let you look for signs of altcoin scams when evaluating coins, while the Googlesheets plugin lets CoinTracking users create their own custom charts inside of Google Sheets or Excel.
CoinTracking’s text-based drop-down menus provide access to the software’s features. It takes some time to learn how the features are organized, but once you’ve flipped through the menus a few times you will begin to get a feel for how they are organized.
There are five menu categories to choose from. Reporting lets you analyze your transactions in various ways, while Enter Coins is the menu you’ll use to upload your transaction data. After you’ve sent all your trading data to your CoinTracking account, you’ll go to Tax Report to crunch the final numbers. Charts & Trends comes in handy when you want to check the status of crypto markets. You can upgrade or change your subscription by heading to the Account menu.
The Dashboard section contains widgets that let you quickly scroll through all of CoinTracking’s most useful charts and reports. Shortcuts to frequently used reports are located on the top of the page.
Performance and Security
CoinTracking’s history dates all the way back to the year 2013, when Bitcoin was still trading for $100. The software has yet to be hacked or compromised in any way. Secure transaction import processes have been developed for exchanges like itBit and Gate.io, which don’t give their users the ability to create read-only API keys.
CoinTracking Free is CoinTracking’s most popular plan. It’s ideal for casual traders with less than 200 transactions to process.
The next step up is CoinTracking Pro, which expands the transaction limit to 3,500 and unlocks the API import feature.
CoinTracking Expert accommodates the needs of even more frequent traders. Institutional and professional traders will want to look into CoinTracking Unlimited, which offers support for an unlimited number of trades.
The cheapest paid plan is CoinTracking Pro, which costs just under $8/month if you pay for two years of service in advance. The most expensive option is CoinTracking Unlimited, which costs $50/month (billed $600 for 12 months of service). Lifetime subscriptions are available, as well. Payment options include USD, EUR, and BTC.
If you use an exchange that has robust export features, you’ll be hard-pressed to find a better crypto tax calculator than CoinTracking. However, before you sign up, you should be aware of the fact that not all cryptocurrency exchanges have good data export features. Traders that use new or niche exchanges might run into frustrations. Some cryptocurrency exchanges don’t offer API services, for example. Others don’t offer any way to export data that’s more than 30 days old.
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