An Ultimate Guide To Koinly: The Free Profit And Loss Calculator

To increase the adoption of cryptocurrencies, crypto enthusiasts need more than just ways to store and trade the digital assets. Koinly’s mission is to speed up the process of crypto adoption, storage, and trade by creating solutions that simplify the ownership and management of crypto assets.

What is Koinly?

Koinly is an online platform that helps crypto enthusiasts track their cryptocurrency transactions and generate tax reports that comply with various regulations. The platform was founded by Robin Singh in 2018. 

Source: Koinly

It simplifies the process of reporting and managing crypto taxes by automating the data import, transaction tracking, and tax calculation. Individuals can try Koinly for free and preview their capital gains before buying a plan.

The platform solves crypto tracking & tax reporting for investors by pairing intuitive software with expert guidance from renowned tax consultants. Individuals can also download their tax reports in various formats, such as Form 8949, Schedule D, or TurboTax. 

Features: Why to Pick Koinly? 

Koinly platform made it effortless for individuals to track crypto assets & taxes along with making all the transactions in one place. Here are a few of the features that boost the value of the platform in the crypto world. 

• The platform is free to use and helps in calculating profits and losses, and Bitcoin profit. 
• It is available in over 20 countries and supports all major tax systems including Form 8949 & Schedule D, and TurboTax & TaxAct.
• Free report preview and compatibility with HMRC / ATO / CRA Report. 
• Support to 23,000+ cryptocurrencies, 170+ blockchains, 400+ exchanges, and 100+ wallets.
• The platform delivers 30+ services and 10+ years of historical crypto and fiat spot prices

In addition to this, automated data import, Margin & Futures trading, taking, Lending & DeFi, and Smart transfer matching are some outstanding features of the platform. 

Overview of Reliable Crypto Tax Reports 

IRS Form 8949, Schedule D report helps in generating pre-filled IRS tax forms in the United States. Individuals from Australia can choose the ATO myTax Report which supports income tax, capital gains tax, and factors in the 50% long-term CGT discount.

For UK users, HMRC Capital Gains Summary is a good option as it helps in calculating capital gains and losses. CRA Schedule 3 uses the approved adjusted cost basis method. Additionally, TurboTax, TaxAct, and H&R Block help in exporting the crypto transactions to other tax software.

The platform also generates tax reports for crypto income, as well as other tax reports for many other countries including Ireland, South Africa, India & more.

Simplify Your Taxes with Koinly

Step 1: Connect your accounts

You can link your exchange accounts with API or CSV files and your blockchain wallets with public addresses. You can do this for different types of trades, such as DeFi, Margin, Futures, or smart transfers.

Step 2: See your gains and losses

You can check your profit/loss for any tax year for free with Portfolio tracking, or profit/loss & capital gains.

Step 3: Download your tax reports

No matter how you file your taxes, whether by yourself, with tax software like TurboTax, or with an accountant, the platform can create the right crypto tax reports for you. You can use Form 8949, Schedule D. for US filing or a Comprehensive tax report for long/short-term disposals.

The Free Bitcoin Profit Calculator

If you are a Bitcoin (BTC) holder and want to calculate your profits and losses, then Koinly can be a good platform to explore. You can calculate your BTC profits and losses in three easy steps:

• BTC P&L calculation: No matter what kind of trades you do – margin, derivatives, sales, or swaps – Koinly can deal with them all. Koinly finds your cost basis and tracks your Bitcoin profits and losses from your transactions, in any fiat currency you choose, both for each transaction and for your whole portfolio. You can see your P&L for each transaction on the transactions page or your P&L overview on your Koinly dashboard.

• BTC trade import: Koinly can handle any type of wallet or exchange you use. Koinly supports all the exchanges you trust like Binance and Coinbase, and 700 more exchanges, wallets, and blockchains. Koinly uses your transaction data to compute your gains, losses, income, and more so you can quickly figure out your Bitcoin profits (and taxes). The best part? Koinly Bitcoin profit calculator is completely free to use, you only pay when you need to download a tax report.

• Bitcoin income tracking: Making Bitcoin through mining, staking with a third party, or even getting paid in BTC? Koinly determines the price of Bitcoin on the day you get it and converts this to your preferred fiat currency, so you always know what you’re making in real-world terms.

Conclusion

Koinly is a powerful and user-friendly platform that helps you with your crypto taxes and profits. You can track your crypto transactions and profits across 23,000+ cryptocurrencies, 170+ blockchains, 400+ exchanges, and 100+ wallets. Additionally, you can calculate your capital gains and losses, income, and taxes according to your country’s tax system. Furthermore, Generating and downloading tax reports in various formats, such as Form 8949, Schedule D, TurboTax, and more become easy with this platform.

FAQs

How much does the platform cost?

The platform is free to use for tracking your crypto transactions and profits. You only pay when you want to download a tax report. The price depends on the number of transactions and the type of report you need. You can check the pricing plans on the Koinly website.

Is the platform secure?

The platform is very secure and respects your privacy. It uses encryption, SSL, and firewalls to protect your data. Koinly does not store your private keys or access your funds. It only reads your transaction data from your exchanges and wallets. You can also delete your data at any time.