Five Reasons Why Koinly Is the Best Crypto Tax Software – Sponsored Bitcoin News

Koinly, a leader in cryptocurrency portfolio tracking and a tax calculator for investors, traders and accountants is Koinly. It has many unique features, which make Koinly stand out among the rest. This article will highlight five reasons Koinly is the most popular crypto tax software today. There are many features that make Koinly stand out from the rest, including DeFi support, Cardano and support for liquidity transactions and integrations with numerous countries.

A wide range of integrations

Koinly software is the best choice for anyone who needs to know how to create a cryptocurrency tax report. This crypto tax calculator makes taxes fun. You will find it easy to use and integrate with many other features that make meeting all your crypto tax requirements.

With Koinly, one can easily track crypto assets and taxes over time across all wallets & blockchains and exchanges. You can now see all your holdings as well as portfolio growth in one spot. See Actual ROI and invested fiat, income overview, and preview profit/loss & capital gains for free. You can also generate tax documentation whenever you need them. Koinly’s tax calculator can help with tax returns and filing reports and it does so in compliance with the tax regulations of a person’s country. Koinly will generate filled-in IRS tax forms for anyone who is located in the USA. International support is available for those who live in Canada, Germany and the UK. Koinly allows taxpayers export transactions to tax software such as TurboTax or TaxAct.

Koinly makes it easy to look through transactions in order to identify any potential problems. There is a double-entry ledger system – every change into a person’s asset balances is backed by an entry, making it easy to debug. To verify that all imported data has been correct, an auto-import verification program checks wallets using API. Koinly can also highlight errors that are caused by missing or incorrectly imported transactions. Koinly will skip duplicate transactions, regardless of whether it is an API import or CSV file import. You don’t need to know what imports and what new.

Most importantly, have all the transactions in one place, thanks to Koinly’s integration with 350+ exchanges (like Binance, Coinbase and AscendEx), 50 wallets (like Ledger, Trezor and Metamask) and 11 services (like Nexo, BlockFi and Paxful). You won’t have to go back and forth from one platform to another. Koinly allows you to sync data and see a full picture of your trading activity.

Assistance from DeFi

Koinly will automatically import any trades or liquidity transactions from Uniswap, Sushiswap, Cream, Value, Balancer, PancakeSwap, PancakeSwap, PancakeSwap, PancakeSwap, PancakeSwap, Value, Balancer, PancakeSwap, PancakeSwap, PancakeSwap, Pancakeswap, Value, Balancer, PancakeSwap, BSC, Polygon wallet, BSC, Wallet, ETH, BSC, Polygon, BSC, Polygon, BSC, Polygon, ETH, BSC, BSC, SSC, BSC, (Swap) when a new a BSC, BSC, Polygon,, BSC,, BSC, Polygon, and awap, Sushiswap, Sushiswap, Value, PancakeSwap, Value, PancakeSwap, Value, PancakeSwap, or Polygon, or Polygon, BSC, and Polygon, an automatic transaction. As tax authorities worldwide crack down on cryptocurrency investors, it is vital to fully understand DeFi and its tax implications. DeFi is more than one idea. This term covers all financial apps that use blockchain technology, cryptocurrency or both. These protocols (smart agreements) are self-contained programs that can execute specific functions.

The DeFi protocol addresses problems in traditional finance. A person applying for a loan at a traditional bank will usually need identification, proof that they are earning, proof of residency, and to fill out several forms. DeFi makes it easy for anyone to deposit any asset into the protocol. These terms and conditions are set by the protocol. A protocol may liquidate a contract in the event that a party cannot pay their dues. There are many DeFi protocols. With DeFi protocols and centralized crypto trading, anyone can access any cryptocurrency exchange.

• Money can be sent to anybody, anyplace.
• Worldwide Stream Money
• Open a savings bank
• To exchange fiat currency and coins for tokens
• Grow and manage a financial portfolio
• You can borrow funds without or with collateral
• Leveraged trading, margins, and derivatives
• Borrow your funds and earn interest.
• Access stable currencies and make investments
• Crowdfund DeFi services and platforms.
• Get insurance
• Place your bets on the outcome of today’s events

Although tax authorities have yet to issue precise guidelines regarding DeFi taxes they have provided clear guidance about crypto taxation. Since cryptocurrencies are considered assets for taxation purposes, they are always taxed in one of two ways – income tax & capital gains tax; depending on whether someone’s crypto investment is seen as a regular income or as regular income disposal of an asset. What kind of tax applies to someone’s investment can be challenging for many to understand, so crypto tax calculator software like Koinly makes it more accessible.

The Koinly cryptocurrency tax software calculates every crypto tax for individuals including DeFi taxes. To use Koinly, one must either sync their wallets or exchanges with API or import CSV files of all crypto transactions. Koinly will automatically identify the different cryptocurrency transactions and calculate applicable taxes. It is best to label the data automatically. However, DeFi transactions can be tagged as loan interest, interest payments received from the pool or rewards.

Cardano Support

Koinly can support more than 17000+ cryptocurrencies, 50 blockchains and other currencies. It also helps with Cardano (ADA), taxes by staking on wallets like Yoroi or Daedalus. Cardano, a blockchain platform that uses proof-of-stake was created in 2015 by Charles Hoskinson (ETHC co-founder).

Koinly supports liquidity transactions

In financial markets, liquidity refers to the ease with which assets can be converted into money. For cryptocurrencies, liquidity refers to the ability to convert assets into cash without difficulty. The ability to convert a coin into money or another crypto currency.. Since liquidity is an essential part of any asset tradeable, liquidity transactions take place every day. The question of whether liquidity transactions should be taxable is still a hot topic. Koinly supports liquidity transactions on the Ethereum and Binance Smart Chain blockchains. Importing liquidity transactions is done automatically and are tagged with Liquidity In/Out. It currently supports many liquidity protocols, including:

Balancer Pool, Uniswap, Sushiswap, Sakeswap, Snowswap, Mooniswap, Curve.fi, Bancor, yearn Finance, PancakeSwap, Value, Cream, STM Network, APY Finance, Pancake, 1-inch. The list keeps growing.

Koinly considers liquidity transactions taxable by default. This is because they involve the exchange of tokens for LP tokens that can then be traded or staked in order to gain more coins. However, if someone feels that such liquidity transactions should not be taxed, then Koinly has the functionality to turn it off on the settings page, ‘Realize gains on liquidity transactions’.

Koinly supports over 100 countries

Koinly offers international tax reporting and is better than other software because it supports more countries. Available in many countries, such as:

• USA
• UK
• Canada
• Australia
• Brazil
• New Zealand
• Denmark
• Finland
• France
• Germany
• Japan

Koinly creates localized tax reports for people who move from one country to another. It does much more than changing currency numbers. Koinly has extra tax reporting options for individuals who have moved from the USA to Australia.

Koinly has more information about the 2022 crypto tax.

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