Koinly

Koinly came out of London back in 2018, and it has grown into one of the most widely used crypto tax tools out there. I first tried it in 2022 when my spreadsheet method finally collapsed under the weight of too many DeFi transactions. What struck me immediately was how many exchanges it supports - over 400 at this point. I connected Binance, Kraken, and Coinbase Pro through API in about ten minutes total. The wallet imports took a bit longer because I had to track down some old addresses, but once connected, everything synced automatically. The transaction matching is where Koinly really earns its keep. It figured out my transfers between exchanges without me having to tag each one manually, which was a relief because I had moved ETH around a lot in 2021.

The automatic categorization is honestly what makes Koinly worth using. When I imported my transaction history, it correctly identified about 90% of my activity - trades, staking rewards, airdrops, and even gas fees. The remaining 10% were mostly weird DeFi interactions that needed manual review. Speaking of DeFi, I was genuinely impressed when Koinly parsed my Uniswap V3 liquidity positions. It calculated the impermanent loss and tracked the fee income separately, which I thought I would have to do by hand. The error reconciliation tab became my best friend during tax prep. It shows you missing cost basis, duplicate transactions, and transfers that did not match up between wallets. I spent maybe two hours fixing these issues for the entire year - way less time than I expected. One thing I appreciate: Koinly lets you choose your cost basis method. I use HIFO (highest in, first out) to minimize gains, but you can switch to FIFO or LIFO depending on your situation.

The real value of any crypto tax tool comes down to how well it connects with the platforms you actually use. If Koinly cannot pull your data automatically, you end up doing manual CSV imports - which defeats much of the purpose. Here is where Koinly stands on integrations.

Exchange support: Koinly connects with major exchanges including Binance, Coinbase, Kraken, KuCoin, Bybit, OKX, Gemini and Bitfinexand more. Most connections use read-only API keys, which means Koinly can see your transaction history but cannot make trades or withdraw funds. Setting up an API connection typically takes under 5 minutes per exchange.

Wallet tracking: Supported wallets include MetaMask, Ledger, Trezor, Trust Wallet, Exodus and Phantomamong others. For blockchain wallets, you usually just enter your public address and the tool automatically scans the blockchain for your transactions. No API keys needed - it is read-only by nature.

Blockchain coverage: Koinly supports direct chain tracking on Ethereum, Bitcoin, Solana, Polygon, Avalanche, Arbitrum, Optimism and BSCand additional networks. This matters especially for DeFi users whose transactions live on-chain rather than on centralized exchanges. Each blockchain has different transaction formats, so broader chain support means fewer manual entries.

What about manual imports? For platforms not directly supported, Koinly accepts CSV file uploads. Most exchanges let you export your transaction history as a CSV, and the tool maps the columns automatically. I have had mixed results with CSV imports - major exchanges work fine, but smaller or defunct exchanges sometimes need column mapping adjustments.

Integration reliability matters as much as breadth. In my testing, the major exchange connections (Coinbase, Binance, Kraken) synced without issues. Smaller exchanges occasionally had sync delays or missed transactions that I had to add manually. Always verify your imported transaction count against your exchange records to catch any gaps.

DeFi protocol integrations are where tax tools really differentiate themselves. Tracking swaps on Uniswap, liquidity pool entries on Aave, or yield farming on Curve involves complex multi-step transactions. Koinly's ability to correctly categorize these transactions varies - straightforward swaps work well, but some exotic DeFi operations may need manual adjustment.

Integration troubleshooting tips from my experience:

1. If an API sync fails, try revoking and recreating the API key
2. CSV imports work better when you export the maximum date range available
3. Some exchanges have separate export files for spot, futures, and staking - import all of them
4. Wallet address tracking may take a few minutes to fully scan for large wallets
5. If transactions are missing, check whether you need to import from multiple chain addresses

The integration landscape changes frequently as exchanges update their APIs and new DeFi protocols launch. What works today might break tomorrow if an exchange changes its API. Good tax tools have dedicated teams monitoring these changes and updating integrations promptly. Check the tool's changelog or status page to see how responsive they are to integration issues.

Pricing is where Koinly needs to justify its value, especially when some competitors offer aggressive free tiers. Here is what each plan costs and which one actually makes sense for your situation.

The free tier covers up to 10000 transactions, which is enough to get a sense of the platform but probably not sufficient for anyone who has been actively trading for a year or more. Even moderate traders easily accumulate hundreds of transactions across exchanges and DeFi protocols. Think of the free tier as a trial rather than a permanent solution.

Plan comparison:

For most users, the Trader plan at $179/year hits the sweet spot between capability and cost. It covers enough transactions for active traders and includes the features that matter most. The entry plan works for occasional traders, while the top tier is really for professionals or extremely active traders.

Is it worth paying for? Consider this: hiring an accountant who understands crypto typically costs 300-500 dollars per hour. Even the most expensive tax tool plan is cheaper than a single hour of specialized accounting help. If the tool saves you from a single mistake on your tax return, it has already paid for itself.

Cost-saving tips:

1. Start with the free tier to test compatibility with your accounts
2. Many tools offer discounts during tax season (January-April)
3. Annual plans are usually cheaper than monthly billing
4. Some plans cover previous tax years too, not just the current year
5. Check if your accountant already has a subscription that includes client access

One thing to watch: some tools charge per tax year, meaning you need to pay again each year even if you are using the same data. Others offer lifetime access for a one-time fee per year. Read the fine print on what exactly your subscription includes before committing.

Price vs value calculation: If you have 500 transactions and the tool costs 150 dollars per year, that is 30 cents per transaction for automated categorization, cost basis calculation, and tax form generation. Doing the same work manually would take hours. Even at minimum wage, the time savings alone justify the cost for most active traders. The real value is in accuracy - one incorrect cost basis calculation on a large trade could cost you far more in taxes than a year's subscription.

DeFi and NFT transactions are the most complex to track for tax purposes, and this is where many crypto tax tools either shine or fall flat. Here is how Koinly handles the complicated stuff.

Koinly supports DeFi transaction tracking, which covers activities like token swaps on decentralized exchanges, liquidity pool deposits and withdrawals, yield farming rewards, and lending protocol interactions. Each of these creates taxable events that need to be properly categorized. In my testing, straightforward swaps were handled correctly. More complex operations like multi-hop routing or flash loans sometimes needed manual review.

DeFi categories Koinly tracks:

1. Token swaps (Uniswap, SushiSwap, PancakeSwap, etc.)
2. Liquidity pool entries and exits
3. Yield farming and harvest rewards
4. Lending deposits and interest (Aave, Compound)
5. Staking rewards (both on-chain and validator staking)
6. Airdrops and token claims

NFT tracking is included and handles purchases, sales, and royalties. The tricky part with NFTs is establishing cost basis - especially for minted NFTs, airdropped NFTs, or NFTs received through swaps. Koinly attempts to automatically determine the acquisition cost based on the transaction, but I have found cases where manual adjustment is necessary, particularly for NFTs purchased on less common marketplaces.

Tax loss harvesting is a feature worth mentioning here. For DeFi users who trade frequently, identifying losing positions that can offset gains is valuable. Koinly includes tax loss harvesting tools that scan your portfolio for unrealized losses you could strategically realize to reduce your tax bill.

The reality of DeFi and NFT tax tracking is that no tool gets it 100% right for every scenario. The on-chain data is complex, transaction types are constantly evolving, and tax rules differ by jurisdiction. Use Koinly as your starting point, but always review the categorizations before filing.

The whole point of a crypto tax tool is generating accurate reports that satisfy tax authorities. Here is what Koinly produces and how well the output works for filing purposes.

Koinly generates tax reports for USA, UK, Canada, Australia, Germany and Franceand additional countries. Each country has different tax forms and reporting requirements, so the tool adapts its output based on your jurisdiction. For US users, you get Form 8949 and Schedule D. For other countries, the equivalent local forms are generated.

Report types typically available:

1. Capital gains and losses report (the main one for most users)
2. Income report for staking rewards, mining, airdrops
3. Transaction history export for your records
4. Tax form-ready output (Form 8949, Schedule D for US)
5. Audit trail showing how each calculation was derived
6. Portfolio summary with cost basis tracking

CPA and accountant access is a feature I find genuinely useful. You can invite your tax professional to view your Koinly account directly. This saves the back-and-forth of exporting reports, emailing them, and trying to explain crypto transactions to someone who might not be familiar with DeFi. Your accountant sees the same data you see and can make adjustments directly.

Cost basis methods are critical for tax accuracy. Koinly supports FIFO, LIFO, HIFO, ACB, Share Pooling and Specific ID, and choosing the right one can significantly impact your tax bill. FIFO (first in, first out) is the default in most jurisdictions, but LIFO or specific identification might result in lower taxes depending on your situation. I recommend running calculations with different methods to see which yields the best result.

Report accuracy is the most important metric. In my testing, I cross-checked Koinly's calculations against manual spreadsheet calculations for a subset of transactions. The numbers matched for straightforward buy-sell-trade scenarios. Where discrepancies appeared was in complex DeFi transactions and cross-chain transfers. Always review your report before filing - the tool is a starting point, not a replacement for careful verification.

One practical tip: generate your tax report early in the year, not on April 14th. Early generation gives you time to identify missing transactions, fix categorization errors, and consult with a tax professional if needed. Rushing through crypto tax reporting is how mistakes happen.

User experience can make or break a tax tool, especially for people who are already stressed about tax season. I have walked through Koinly's entire workflow from signup to report generation, and here is my honest assessment of the experience.

Initial setup is where first impressions form. Creating an account is standard - email, password, maybe two-factor authentication. The real work starts when you connect your exchanges and wallets. Koinly walks you through this with step-by-step instructions for each platform, which is helpful because every exchange has a slightly different API key creation process. The whole initial import took me about 30 minutes for 5 exchange accounts and 3 wallets.

The import process is mostly automated but not entirely hands-off. After connecting your accounts, the tool pulls your transaction history and attempts to categorize everything. This is where you will likely spend the most time - reviewing categorizations and fixing any transactions the tool could not automatically identify. Transfers between your own wallets are a common source of errors because they can look like sales to the tool.

The error detection features in Koinly help catch common issues like duplicate transactions, missing cost basis, and misidentified transfers. This saves significant time compared to manually scanning through hundreds or thousands of transactions. The tool flags potential problems and lets you resolve them one by one.

Learning curve is moderate. If you understand basic crypto terminology (cost basis, capital gains, etc.), you can navigate Koinly without much difficulty. Complete beginners might struggle with some concepts, but the tool provides explanations and tooltips throughout. I would estimate that someone with moderate crypto experience can go from zero to finished report in 2-4 hours, depending on how many transactions they have.

Things that could be better:

1. Transaction review can feel tedious with hundreds of items to check
2. Some error messages are too technical for average users
3. Loading times increase noticeably with very large transaction histories
4. Mobile experience lags behind the desktop web interface
5. Bulk editing transactions would save time for repeated corrections

Comparison with doing taxes manually: Before crypto tax tools existed, you had two options - either ignore crypto taxes (risky and increasingly prosecuted) or spend days building spreadsheets. I tried the spreadsheet approach for one tax year with about 200 transactions and it took over 15 hours. The same data set took Koinly about 30 minutes to process including manual review. The time savings alone make the subscription worthwhile, before even considering the accuracy improvements.

One underappreciated feature is the ability to run your report multiple times as the year progresses. You do not have to wait until January to start organizing your transactions. Importing quarterly and fixing issues as they come up spreads the work over the year and means fewer surprises at tax time. I now import to Koinly every few months to keep things current.

Crypto tax tools serve a wide range of users, and Koinly fits some profiles better than others. Here is my breakdown of who gets the most value.

Casual holders (under 50 transactions/year): If you just buy and hold on one or two exchanges, Koinly works fine but might be overkill. A simple spreadsheet could handle your needs. That said, even casual holders benefit from automated cost basis tracking as their portfolios grow.

Active traders (50-1000 transactions/year): This is the sweet spot for Koinly. Manually tracking hundreds of trades across multiple exchanges is impractical, and the automation saves hours of work. The cost of a subscription is easily justified by the time savings alone.

DeFi power users (1000+ transactions): If you are farming yields, providing liquidity, and interacting with dozens of protocols, you need a tool that handles DeFi complexity well. Koinly's DeFi support is solid enough for most scenarios. Power users should also budget time for manual review of complex transactions.

Tax professionals and CPAs: Koinly offers CPA access features that make client collaboration straightforward. The ability to export standard tax forms saves accountants from manually interpreting raw transaction data.

International users: Your experience with Koinly depends heavily on whether your country is supported. Tax rules vary dramatically between jurisdictions, and the tool needs to understand your specific country's requirements. Check country support before committing to a paid plan.

My bottom line: if you have more than a handful of crypto transactions, a dedicated tax tool is worth the investment. The cost of getting your taxes wrong far exceeds the cost of a subscription. Whether Koinly specifically is the right choice depends on your transaction volume, DeFi usage, and geographic location.

Tax accuracy is ultimately what matters most - getting a number wrong on your tax return can lead to penalties, audits, or overpayment. Here is my assessment of how reliable Koinly's calculations actually are.

Cost basis methodology is the foundation of accurate crypto tax calculations. Koinly supports FIFO, LIFO, HIFO, ACB, Share Pooling and Specific ID, which covers the methods accepted by most tax authorities. Choosing the right method can significantly impact your tax bill. FIFO (first in, first out) is the default in most countries, but HIFO (highest in, first out) can minimize gains in a rising market. I recommend calculating with multiple methods to see which results in the lowest tax liability for your situation.

Where Koinly gets calculations right: Straightforward buy-sell-trade sequences are handled accurately. If you bought BTC at one price and sold at another, the gain/loss calculation will match what you would calculate by hand. Simple transfers between your own wallets are also typically identified correctly (marked as non-taxable moves rather than sales).

Where mistakes are more likely:

1. Cross-chain bridge transfers can be misidentified as sales
2. DeFi yield farming with complex entry/exit transactions
3. Token migrations and contract upgrades
4. Airdrops where the cost basis should be zero but might be wrongly assigned
5. Internal exchange transfers that look like deposits from unknown sources

My verification process: After generating a report with Koinly, I spot-check 10-15 transactions manually, focusing on the largest trades and any DeFi interactions. If those match my expectations, I have reasonable confidence in the rest. This takes about 30 minutes but catches the errors that matter most financially.

An important consideration: tax tools are only as accurate as the data they receive. If you have gaps in your import data (transactions on defunct exchanges, missing wallet addresses, P2P trades with no records), the tool cannot calculate correct cost basis for those assets. Garbage in, garbage out applies here.