Koinly Review (2022)
Koinly is a crypto tax software that makes it easier to track all your crypto trades, transactions, and staking rewards. It works with hundreds of exchanges and wallets and can track 6,000+ coins on over 50 blockchains so you can file your taxes in the UK and 100+ other countries.
The downside is that Koinly is quite expensive – especially if you have a lot of annual transactions. It also doesn’t have support for NFTs, and some of its features are only useful in the US.
But it’s still an excellent bit of kit that makes it easy to make sense of your cryptocurrency transactions.
If you have a large portfolio of coins or you’re a particularly active crypto investor, reconciling all of your trades across different exchanges and wallets can become a nightmare.
Koinly is a software that helps you conquer your crypto-related taxes. It tracks all of your transactions throughout the year and then produces an easy-to-read report that you can use to sort out your taxes with minimal hassle.
But is Koinly really as good as it sounds? Is it safe and easy to use?
In this Koinly review, I’m going to go through everything that this popular crypto tax software has to offer. Read on to learn more about the platform’s features, fees, and limitations before you sign up.
Advantages & Disadvantages
- Supports the UK, US, Canada, Australia, New Zealand, and many other countries.
- Works with 350+ exchanges, 50+ wallets, and 6k+ blockchains.
- You can get started for free to see if you like the software before subscribing.
- Makes it easy to find incorrect or duplicate transactions.
- Can produce tax reports, but can also be used as a portfolio tracker.
- Claims to be “free software”, but it won’t produce tax reports without a subscription.
- Subscription fees are high if you have a lot of crypto transactions.
- No support for NFTs and non-crypto digital assets.
- Some features are US-focused and aren’t helpful in the UK.
Overview & Highlights
Koinly is a crypto tax software company that was founded in 2018.
It claims to have filed more than 11,000 tax reports to date – helping crypto traders track hundreds of millions of dollars’ worth of digital assets.
Here’s a quick overview of some of the main benefits:
- Convenient crypto tax reports and calculators.
- Exchange, wallet, and blockchain integrations (for automatically importing transactions).
- Simplified portfolio tracking that shows realised and unrealised gains.
- Support for 6,000+ coins on 50+ blockchains.
- Produces tax reports for residents of 100+ countries.
These are just a few of Koinly’s features, though.
For more information on all the platform’s tools, check out their features page.
Exchange, Wallet, & Blockchain Integrations
Most people come to Koinly because they need help filing their crypto-related taxes.
But before you can even file your taxes, you need to sort out all the crypto transactions you made in the past year.
If you only made a few dozen trades last year, you might find that it’s easier to manually enter your transactions into Koinly one by one. Or you can upload a CSV to Koinly to import a large number of transactions at once.
You’ll get the best bang for your buck, however, if you take advantage of Koinly’s hundreds of exchange, wallet, and blockchain integrations using APIs. These allow you to automatically import transactions that have already been made, as well as transactions that you make in the future.
The process of integrating your wallet or exchange to Koinly by API varies slightly depending on what platforms you’re working with. But the general idea is that you can connect a read-only API (so it can’t withdraw funds or make trades) to Koinly. This allows Koinly to automatically upload all your trades, staking, and DeFi data in real-time.
You can also easily sync your crypto transactions from your personal wallets using Koinly’s blockchain integrations. All you need to do is enter your public address and, voila! Koinly will automatically grab any transactions connected to that address. (But FYI: I’ve found it easier to import a CSV of transactions made via private wallets).
The best part?
Koinly makes it easy to identify mistakes and duplicate transactions (which are bound to happen). That way you can fix any errors and get the most accurate transaction reports possible for your taxes.
Crypto Tax Reports & Calculator
Once you’ve uploaded your crypto transactions manually or integrated your wallets and exchanges with Koinly, the software will prepare crypto tax and audit reports.
Koinly can generate a number of generic tax reports (i.e., not country-specific) that you can use for your own personal records or filing purposes.
- Transaction report
- Capital gains report
- Income report
- Gifts, donations & lost assets report
- Expenses report
- End of year holdings reports
- TurboTax report (for US residents)
For UK residents, Koinly can also produce a Capital Gains Summary Self Assessment (SA108) form, which you may need for your taxes.
In addition to its crypto tax reports, Koinly’s calculators also give you an idea of how much you might owe in taxes on your crypto holdings in your account dashboard by showing you your annual capital gains.
Keep in mind that this might not be wholly accurate if you have income from a variety of other sources, but it can be helpful for planning purposes.
Although Koinly is primarily a crypto tax software, you can also use it to track your portfolio.
This is particularly helpful if you have crypto holdings in multiple wallets and on a number of different exchanges – as it can be hard to keep track of the value of all your assets.
Koinly shows you all your different coins and can track your portfolio balance over time. It will also calculate your return on investment and your profits and losses (including unrealised gains and losses) so you can see how well you’re doing compared to the markets.
That said, Koinly is designed more for tax reconciliation and less for portfolio tracking. If you’re primarily interested in tracking your portfolio, you’ll probably be better off with a more feature-rich platform like Delta.
Koinly currently supports more than 100 countries, including:
- United Kingdom
- United States
- New Zealand
Technically, residents of any country that uses Koinly’s cost basis methods (FIFO, LIFO, Highest Cost, Lowest Cost, Average Cost Basis, Shared Pool) can also use the platform to generate generic tax forms (it’ll just require manual configuration).
Koinly can produce generic tax information forms for any of the countries that use one of its supported cost basis methods (e.g., FIFO and LIFO).
However, the specific forms that Koinly can produce varies from country to country. Residents of some countries can only produce transaction reports, end-of-year valuation reports, and income reports, not country-specific tax forms.
But Koinly is quite US-centric. So many of its best features, such as the ability to export your transaction report to tax filing software, are only available in the United States. And in some countries, Koinly doesn’t provide tax forms – just transaction summaries.
Check out Koinly’s list of supported countries for more information.
Supported Exchanges, Wallets & Blockchains
With Koinly, you can sync your tax dashboards to your accounts at hundreds of exchanges, dozens of wallets, and thousands of different blockchains.
As far as Koinly’s supported exchanges go, the software integrates with more than 350 popular brokers and exchanges, such as:
Koinly can also directly import your transactions from 50+ wallets, including:
- Trust Wallet
- Atomic Wallet
- Coinbase Wallet
- Crypto.com DeFi Wallet
Finally, Koinly supports imports of over 6,000 cryptocurrencies via CSV upload and manual transaction entry (including all ERC-20 tokens). You can also import transactions directly from 50+ blockchain networks using your public address. Supported networks include:
- Bitcoin (BTC)
- Ethereum (ETH)
- Binance Chain (BNB)
- Binance Smart Chain (BSC)
- Avalanche (AVAX)
- Polygon (MATIC)
Check out Koinly’s full list of supported integrations for more information.
Koinly markets itself as a “free tax software” but this isn’t exactly true.
You can make an account with Koinly, import your transactions, and view your capital gains for the year without paying for a subscription plan. But if you want to generate tax forms or import more than 100 transactions, you’ll need to pay for a plan.
Koinly offers four different subscription plans, which are listed below.
|Number of Transactions||100||1,000||3,000||10,000|
|Unlimited Wallet & Exchange Integrations||✓||✓||✓||✓|
|Comprehensive Audit Report||✓||✓||✓||✓|
|Live Chat Support||✓||✓||✓||✓|
The main difference between Koinly’s subscription plans is the number of transactions you can reconcile in a single tax year.
Koinly is reasonably priced if you only make a few hundred trades per year. But if you’re a very active trader or you use a trading bot, you could easily find yourself paying nearly $300 for Koinly’s software. Yikes!
The other issue with Koinly is that its standard subscriptions don’t support more than 10,000 per year. You can pay for additional transactions if you need them.
But if you’re the type of person that needs more than what’s offered by Koinly’s standard plan, you might want to opt for a different service, like CoinTracking.info, which offers an unlimited subscription plan.
You can find out about this alternative in my CoinTracking.info review.
Safety & Security
Koinly isn’t a trading platform – it only tracks your transactions.
However, if you’re setting up automatic connections to your exchange accounts, then it’s critical that you configure the APIs to be read-only without any withdrawal or trading privileges.
If you don’t, then it’s possible that if somewhere were to compromise Koinly, or get access to your Koinly account, then they could cause some serious damage.
If you’ve generated and used APIs before, Koinly do have guides for each of their integrations to guide you through it. If APIs aren’t something you’re comfortable with, you can reach out for support from Koinly.
Alternatively, you can eliminate the potential for this sort of hack by only uploading your transactions via CSV or manual entry – but this is tedious and defeats the purpose of the software.
You could connect your wallet accounts using their public addresses rather than APIs. Since your public addresses are public anyway, uploading your Bitcoin (BTC) transactions to Koinly using your public address won’t expose you to any risk of theft if someone were to hack Koinly.
To protect your funds, Koinly states that all API and blockchain keys that you use to connect your wallets and exchanges to the software are encrypted using AES-256-GCM. Koinly also never asks you for access to your private keys (which you should never give out anyway).
Koinly: The Best Crypto Tax Software?
Koinly is a great addition to the rapidly growing crypto tax software industry and it’s a powerful tool if you need help calculating your capital gains.
Here are some of the things that I liked about Koinly:
- Easy Transaction Import & Integrations: Koinly offers hundreds of wallet and exchange integrations plus support for more than 6,000 coins on 50+ blockchains. This makes it super easy to sync your various accounts – so your portfolio’s holdings are always up to date.
- Tax Report Support in 100+ Countries: Crypto investors in the UK and more than 100 other countries can generate easy-to-use reports for filing their taxes using Koinly.
- Portfolio Tracking: In addition to tax reports, Koinly also provides a simple way to keep track of your crypto portfolio over time.
However, I’m not a huge fan of Koinly’s mildly misleading statements about its fees.
It markets itself as a free software, but you can’t produce tax reports unless you pay for a plan. It also ends up being really expensive for people who have a lot of annual transactions.
Thanks for checking out this Koinly review!
Got a question? Or want to share what you think about Koinly?
Let me know in the comments below!