CoinTracking Review - Best Crypto Tax Calculator

In this post, we’ll cover CoinTracking, a tool that lets you analyze your trades and aids in creating real-time tax returns. It computed the total value of your coins, profits, losses, realized and unrealized gains, and tax reports. CoinTracking enables you to keep track of all your transactions in real time, whether you are new to cryptocurrency investment or have been trading for a while. Read out the entire CoinTracking Review to know more about the platform.

What is CoinTracking?

CoinTracking is a popular cryptocurrency portfolio tracking and tax reporting platform. It is designed to help cryptocurrency traders and investors keep track of their digital asset holdings, monitor their profits and losses, generate comprehensive tax reports, and provide various analytical tools to assist with cryptocurrency trading strategies.

With CoinTracking, users can import their transaction data from various cryptocurrency exchanges and wallets, allowing them to have a consolidated view of their entire cryptocurrency portfolio. The platform supports over 8,000 cryptocurrencies and integrates with more than 60 cryptocurrency exchanges, making it compatible with a wide range of digital assets and trading platforms.

CoinTracking Features

To help cryptocurrency traders and investors manage their portfolios, keep track of their assets, and provide tax returns, CoinTracking provides a wide range of tools. The following are some of the main features offered by CoinTracking:

1. Portfolio management: From a single platform, customers of CoinTracking may monitor and control their Bitcoin holdings. It interfaces with more than 60 cryptocurrency exchanges, supports over 8,000 coins, and allows users to import transaction data and examine all of their holdings on a single dashboard.
2. Trade Tracking and Analysis: Users can use CoinTracking’s trade tracking and analysis features to keep track of their trades and keep checks on their performance. It offers accurate profit/loss computations, real-time balance updates, and thorough transaction history. Information on average purchase prices, current values, realized and unrealized gains, and more is available to users.
3. Tax Reporting: CoinTracking makes filing Bitcoin taxes easier. It produces thorough tax reports, such as those for capital gains, income, and gift taxes. Depending on their jurisdiction’s requirements, users can alter the reporting settings.
4. Interactive Charts and Analytics: To view and evaluate the digital currency market movements and portfolio performance, the platform provides interactive charts, graphs, and analytical tools. Users can keep tabs on market trends, watch price changes, and develop insights into their investing plans.
5. API Integration and Exchange Imports: CoinTracking enables API integration with many cryptocurrency exchanges, enabling users to import their trading data automatically, and it also supports exchange imports. Time is saved, and current and accurate portfolio information is provided. Additionally, it supports many file formats and provides manual import options for transaction data.
6. Performance Analysis: To assess the performance of bitcoin investments, CoinTracking offers performance analysis tools. Users can evaluate the profitability of their trading techniques, check historical statistics, and analyze their trades. ROI (Return on Investment), annualized returns, and other performance measures

Is CoinTracking Safe?

Yes, Cointracking is safe to use. To safeguard platform security and user data, CoinTracking has put in place security measures. It’s crucial to remember that no internet service can ensure complete security. To protect user data, including personal data and transaction details, CoinTracking employs encryption techniques. As a result, sensitive information is kept private and is better protected from illegal access.

Additionally, CoinTracking offers two-factor authentication, which strengthens user accounts’ security. By turning on 2FA, users can require an additional verification step in addition to their password to access their accounts, such as a special code created by an authentication app or received through SMS.

CoinTracking Pricing

How to Use CoinTracking for Taxes?

To ensure accurate and thorough reporting of your cryptocurrency transactions, using CoinTracking for taxes entails a number of processes. An overview of using CoinTracking for taxes is shown below:

Sign Up and Set Up Your Account

1. Visit the CoinTracking website and create an account.
2. Complete the registration process and log in to your account.
3. Set up your profile and preferences, including your preferred fiat currency and tax calculation method based on your jurisdiction’s regulations.

Import Your Transactions

1. Connect your cryptocurrency exchanges and wallets to CoinTracking.
2. CoinTracking supports various methods of importing transactions:
3. Automatic API Integration: Set up API connections between CoinTracking and your supported exchanges to automatically import trade data.
4. Manual Imports: Download trade history files from your exchanges or wallets and manually import them into CoinTracking.
5. Follow the instructions provided by CoinTracking to import your transactions accurately.

Review and Categorize Transactions

1. Once your transactions are imported, review them in the CoinTracking interface.
2. Ensure that all transactions are correctly categorized (buy, sell, trade, transfer, etc.) and match your actual activities.
3. Make any necessary adjustments or corrections, such as merging duplicate transactions or splitting complex trades if required.

Verify and Calculate Gains/Losses

1. CoinTracking calculates gains and losses based on the data imported and the tax calculation method you have set.
2. Review the calculated gains and losses to ensure accuracy.
3. CoinTracking considers factors such as acquisition cost, sale proceeds, fees, and holding periods to determine capital gains or losses.

Generate Tax Reports

1. CoinTracking provides various tax reports tailored to different jurisdictions.
2. Go to the Tax Reports section of CoinTracking and select the appropriate report based on your tax requirements.
3. Customize the report parameters, such as tax year, specific cryptocurrencies, and additional details as needed.
4. Generate the tax report and review it for accuracy.

Export and Utilize the Tax Reports

1. Once you are satisfied with the tax report, export it in the desired format (e.g., PDF, CSV, Excel).
2. Provide the exported tax report to your tax professional or use it as a reference when filing your cryptocurrency taxes.
3. Consult with a tax advisor or accountant to ensure compliance with your jurisdiction’s tax laws and regulations.

CoinTracking Customer Support

On their website, CoinTracking provides live chat help. Additionally, you may follow them on Twitter. Also, you can visit their Youtube Channel to start using their platform. Answers to frequently asked questions by their users are provided in the FAQ area of their website. At the CoinTracking help desk, you can open support tickets and follow their progress.

CoinTracking Pros and Cons

Pros

• Exchanges constantly add new features, modifying their fee structure and altering their APIs. CoinTracking always stays current and up-to-date regarding all the changes implemented by crypto exchanges.
• The exchange compatibility, ease of use, trading chart features, and performance of CoinTracking is unmatched.
• Another advantage is that for beginner crypto traders, CoinTracking comes with a free plan.

Cons

• You need a paid account to use the API import feature. This means that if you are using an exchange that doesn’t have a CSV export feature, say Bithumb, an upgrade is required for you to do your taxes.

Conclusion

You’ll struggle to find a better cryptocurrency tax calculator than CoinTracking if you use an exchange with comprehensive export tools. However, you should be aware that not all cryptocurrency exchanges have effective data export tools before you sign up. Users of niche or new exchanges may experience aggravation. For instance, some cryptocurrency exchanges don’t provide API services. Others don’t have a means of exporting data that is older than 30 days.

Frequently Asked Questions

Does CoinTracking have an app?

Yes, CoinTracking supports both Android and iOS to monitor your transactions easily.

Which exchanges CoinTracking support?

CoinTracking supports integration with a wide range of cryptocurrency exchanges. Some of these exchanges include Binance, Coinbase, Kraken, KuCoin, Gemini, and many more.

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