This post is part of The Rollup, Decrypt’s curated collection of stories presented in partnership with Коинли.
If you currently hold cryptocurrency in your portfolio or you have traded crypto over the past year, it’s high time you started figuring out your crypto tax obligations.
That can sound like a daunting prospect—even if you don’t owe anything in taxes.
Browse through crypto social media, and you’ll find that the main tax preparation advice given to newbie traders is to make a note of the details of every trade. That means you need to record the purchase or sale date for each trade, as well as the purchase or sale price—and take into account complications like dollar-cost averaging.
That’s before you even begin to take into account the сложености of flipping НФТ, или децентрализоване финансије (дефи) tools like фласх кредитипринос пољопривреде. It all adds up to an awful lot of paperwork—but trying to maintain meticulous spreadsheets in minute detail is not only draining but also plain unnecessary.
There’s no need to lose hours over crypto taxes when you can easily automate almost all of the process simply by using crypto tax software like Коинли. It offers an array of free features and serves the needs of all sorts of investors and traders.
Here’s how tax software like Koinly can streamline and simplify your crypto taxes.
Import your data from cryptocurrency exchange
When you sign up to Koinly, you’ll be asked to plug your crypto data from any centralized exchanges you use into the web-based software. This process doesn’t require your exchange log-in details or the KYC documents you shared with them. All it requires to get things started is your raw trading data.
Since centralized exchanges are used to working with crypto tax software, the process is rather straightforward. Exchanges can share your data with Koinly via API—an intermediary technology—or in the form of a CSV, a Microsoft Office Excel file type, which you can download and then upload to Koinly yourself. Either process takes just a few clicks.
Koinly currently works with 370 centralized exchanges, including big hitters like Бинанце, Цоинбасе, кракенФТКС, meaning that your preferred exchange is almost certainly supported.