Today, the cryptocurrency industry is full of diverse financial products that come in all shapes and sizes. If you are an avid crypto enthusiast, you might be actively using multiple digital wallets across different crypto platforms and exchanges.
As such, it can be quite cumbersome to keep abreast with your crypto portfolio at all times.
In this review, I explore what Koinly is, its different features, and how you can make the most of this platform to simplify your crypto tax proceedings.
Koinly – An Overview
Investing in cryptocurrency does give you the opportunity to target above-average market returns. However, like any other tradable asset, this will also add to your financial liabilities. In other words, depending on where you live – you might be required to pay taxes on any earnings you make on crypto transactions. Unless you live in a crypto-friendly nation, that is.
Understanding your crypto tax obligations can be a bit tricky. This is especially true in today’s context, when the rules and regulations concerning cryptocurrencies seem to be changing every other month.
Therefore, it is paramount that you have resources in place to stay on top of your crypto tax obligations. This is where Koinly comes in. The platform can automatically compile your trades, measure your capital gains, and, most importantly, create reports for your tax purposes.
Put simply, it can help you save a significant amount of time by helping you work out the taxes linked with your crypto activities. What’s more, it can even point out if you can potentially save some money.