Koinly: A Simple Way to Handle Crypto Taxes Without the Stress
Cryptocurrency investing has grown rapidly, but managing crypto taxes remains one of the biggest challenges for investors. Tracking trades across multiple exchanges, wallets, NFTs, and DeFi platforms can quickly become overwhelming. This is where Koinly comes in.
Koinly is a crypto tax software designed to automate the process of tracking transactions and calculating tax obligations. Instead of manually maintaining spreadsheets, users can rely on Koinly to gather data, organize it, and present clear tax summaries.
What Makes Crypto Taxes Complicated?
Crypto taxes are not limited to buying and selling. Activities such as:
- Crypto-to-crypto trades
- Staking and mining rewards
- NFT purchases and sales
- DeFi activities like liquidity pools and yield farming
can all create taxable events. Each transaction may need to be valued at the correct market price and classified properly. For active users, this can mean thousands of transactions per year.
How Koinly Solves the Problem
Koinly connects with wallets and exchanges using secure, read-only access or file uploads. Once connected, it automatically:
- Imports transaction history
- Identifies transfers between personal wallets
- Classifies taxable and non-taxable events
- Calculates capital gains, losses, and income
The platform then displays everything in a simple dashboard, making it easier to understand your crypto tax position.
Free to Start, Pay Only When Needed
One of Koinly’s biggest advantages is its free plan. Users can import transactions, track portfolios, and preview tax results at no cost. Payment is only required when downloading official tax reports for filing purposes. This makes it accessible for beginners while still powerful enough for advanced traders.
Support for DeFi and NFTs
Unlike basic tax tools, Koinly supports complex crypto activities. It can track NFT mints and trades, staking rewards, and many DeFi transactions. While some advanced activities may still require review, Koinly significantly reduces the manual work involved.
Security and Privacy
Koinly does not store or control user funds. It uses read-only connections, meaning it can view transaction history but cannot move assets. This approach helps maintain a high level of security and user trust.
Who Should Use Koinly?
Koinly is suitable for:
- Long-term crypto investors
- Active traders using multiple exchanges
- NFT collectors
- DeFi users
- Accountants managing crypto portfolios
Whether you have a few transactions or thousands, Koinly scales to meet different needs.
Final Thoughts
Crypto taxes don’t have to be confusing or time-consuming. Koinly provides a practical solution by automating calculations, supporting a wide range of crypto activities, and offering a free entry point. For anyone looking to stay compliant while saving time, Koinly is a tool worth considering.