I have started with cryptocurrencies like most of us. I earned my first smaller amounts on the internet and at some point, I started buying and investing. In the beginning, I never thought about professionally tracking my portfolio because there was not much to track and I was holding most of my cryptos in one single wallet. Of course, I also never thought about making a crypto tax report.
The Importance of Cryptocurrency Tracking
In the world of crypto, things can change and develop really fast. The crypto market has exploded since the beginning of the year. Many of us have made some nice gains on their crypto. Now you can stick your head in the sand and say that these sick gains never happened or you can handle it professionally. This means tracking your cryptocurrency portfolio and your trades in the first place. Then you should also consider a crypto tax report at some point. I mean, you can also migrate to a country with no taxes on crypto or you can just hope that you can spend large amounts of money without anybody asking you where it's coming from. That´s your decision.
For a long time, I was doing fine with the portfolio manager from CoinGecko. If you don´t do many trades or if you don´t have a lot of cryptos (yet) then you are totally fine with this solution. However, these free tools are not really advanced and a lot of options that are making your life easier are missing. For example, you can´t import data automatically from your exchanges via an API.
Benefits of CoinTracking
While doing my own research, I found CoinTracking. CoinTracking is no doubt the leading tool for cryptocurrency tracking and tax reporting.
CoinTracking has more than 790.000 active private users and more than 1.250 CPAs and Corporate Clients.
CoinTracking analyzes your trades, incomes, and outcomes to generate real-time reports. These reports do not only contain a profit and loss calculation and the value of your cryptocurrencies but also realized and unrealized gains, reports for taxes, and much more. There is a huge amount of data available on CoinTracking. CoinTracking knows the prices for 9774 different coins and assets to ensure that you always have a complete overview. This includes the historical data from the past twelve years.
You have all kinds of interactive charts for trades and coins and you can choose between 25 customizable crypto reports.
You can easily import all your trades from more than 110 different exchanges. You can upload a CSV file from the exchange to CoinTracking or you can automatically import your trades via APIs.
You can even upload a CSV file from some hardware wallets like Ledger or you can directly synchronize with the blockchain.
In the end, you can export all your data and reports in Excel, PDF, CSV, XML & JSON. Furthermore, you can do your tax declaration with one click. The good thing about Cointracking is that you can use it also outside the US. You can generate tax reports for more than one hundred countries worldwide. These reports include every taxable event including Capital Gains, Income, Mining, Staking, and so on.
How To Use CoinTracking
You can use CoinTracking completely anonymously. You don´t even need to provide an email address and all your data gets encrypted.
You sign up for a free account that is limited to 200 transactions and only allows the exchange import via CSV. This free version allows you to test similar functions of the platform before you make a decision for upgrading your account to pro, expert, or unlimited. The billing amount that you see will be reduced by 10% if you have signed up for Cointracking using my link in this post.
I do recommend using the free version first to see for yourself if the platform fits your needs. CoinTracking offers a lot of features and functionalities. So simply start by importing some data from your exchange or your wallet and start playing around with the functions.
CoinTracking has published 16 how-to video tutorials here on YouTube. If you get stuck at one point, I recommend watching these tutorials or simply reach out to their support.
My Final Conclusion
CoinTracking is no doubt the leading tool for cryptocurrency tracking and tax reporting. It has helped me to manage my portfolio in a very professional way and to make my tax report with ease. I recommend it to anyone who earns or trades cryptocurrencies frequently, especially those living outside the US.
At the end of my post, I also like to remind you that my intention in this post is to raise your awareness of CoinTracking. My intention is not to replace your own research. I may look smart on my profile pic but I am not your financial sensei. 🤓
This post contains my invitation link for CoinTracking. If you use it when signing up, you will get a 10% discount whenever you decide to upgrade your account. Nevertheless, my post really reflects my own opinion.
I hope I could provide you with some interesting and useful information so that you know how you can professionally manage your portfolio and handle your crypto tax reports. Thank you guys as always for reading, liking, following, and tipping 👍
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