Koinly

Koinly Review Guide (2025): Everything You Need to Know + FAQ

Feeling that crypto tax season creep in? Wallets everywhere, CEX trades in the thousands, a few DeFi experiments that “seemed small at the time,” and now you’re staring at a spreadsheet that looks like a failed science project?

If that’s you, you’re not alone. Between centralized exchanges, self-custody wallets, NFTs, and airdrop seasons, crypto tax time can turn into a mess—fast. That’s exactly the problem Koinly tries to solve. Connect accounts, pull in your history, fix a few warnings, download a compliant report, and move on with your life. You can even try it free and only pay when you actually need the official file.

Short on time? I get it. The goal here is simple: clean, compliant crypto tax reports without sacrificing your weekend.

In this guide, I’m going to show you how Koinly fits into a real investor’s stack and where it shines—and where it might need a little help. The goal isn’t to sell you on software; it’s to help you avoid expensive mistakes and wasted hours.

The real problems crypto investors face at tax time

Let’s be honest—crypto taxes aren’t hard because the math is tricky. They’re hard because the data is scattered and the rules are picky. Here’s what usually blows up people’s April plans:

• Scattered wallets and exchanges: A little Coinbase here, a little Binance there, a MetaMask wallet with a few chains, and a Ledger for “long-term.” Miss one source and your cost basis goes missing.
• Missing cost basis on transfers: Move ETH from Binance to your wallet, then swap it on Arbitrum. If the transfer isn’t recognized as internal, you can create false gains or “no cost basis” errors.
• DeFi and NFTs are noisy: LP tokens, wrapping, bridging, staking rewards, yield, mints, airdrops, burn mechanics—half of this looks like taxable events to the wrong software if it isn’t tagged correctly.
• FIFO vs LIFO vs HIFO confusion: Pick the wrong method and your report doesn’t match your jurisdiction—or your strategy. For example, the UK uses share pooling, while many US investors test HIFO for tax efficiency.
• Short-term vs long-term rules: Sell a day too early and it’s short term. Miss a holding period tag on one wallet and the whole year’s timing looks off.
• CSV headaches: Different exchanges export different columns. Some include fees; some don’t. Some rename tokens mid-year. Duplicates and gaps are common.
• Deadline stress and audit fear: Tax agencies are paying attention. The IRS asks about digital assets on the front page of Form 1040, and HMRC and the ATO have been sending “nudge” letters and using data-matching programs for years. If your numbers don’t add up, it’s not fun to explain.

Real example time:

• You bought SOL on Kraken, bridged some to Solana from an exchange withdrawal, then used it via Phantom for NFTs. If the bridge and internal transfers aren’t matched, you’ll see “missing cost basis” on those NFT buys.
• You LPed on Uniswap, then removed liquidity months later. If the LP tokens aren’t treated correctly, your report can show phantom gains on the add/remove and double count fees.
• You traded on Bybit futures heavily in Q1, then took a break. If fees are recorded differently per market, reported PnL can swing by thousands.

That’s the chaos Koinly is built to tame: unified imports, automatic transfer matching, warnings when something’s off, and ready-made reports per country rules.

What I promise in this guide

• How Koinly actually works across exchanges, wallets, and chains—no fluff.
• What it does well (accuracy, reconciliation, integrations) and where it struggles (edge-case DeFi, niche chains).
• What you’ll pay and how to choose a plan based on your transaction count.
• Who gets the most value out of Koinly—and who might consider an alternative.
• Practical steps to get a clean, compliant report without rework.
• Rapid-fire answers to the most common Koinly questions I see every season.

Who this review is for

• Investors who bought on a few exchanges and held through the year.
• Active traders/day traders with thousands of fills and fee nuances.
• DeFi power users who bridged, LPed, borrowed/lent, and farmed on multiple chains.
• NFT collectors/creators who minted, flipped, or earned royalties.
• Miners/stakers/airdrop hunters who need clean income categorization.
• Accountants who want a transparent audit trail and exportable files.

What you’ll leave with

• A simple setup plan that avoids the usual pitfalls (like missing cost basis and duplicates).
• A clear pricing snapshot and how to estimate your transaction count correctly.
• Pro tips on tagging transfers, LP activity, bridges, and airdrops the right way.
• An honest verdict on whether Koinly is the smart move for your situation.

If you’ve been juggling Coinbase, Binance, MetaMask, Ledger, Solana wallets, and a couple of NFT marketplaces, you’re exactly the person this was written for. I’ll show you how to connect it all to Koinly, clean up the weird stuff, and get the right report without guesswork.

Ready to see how it actually handles your exchanges, wallets, and chains without breaking a sweat? That’s up next—let’s look at what Koinly gets right and how it does it behind the scenes.

How Koinly works and what it gets right

When crypto taxes feel like chaos, I want a UI that calms me down and a backend that quietly does the heavy lifting. That’s the experience here: connect, let the engine chew through your data, then fix the few things that actually need your attention.

“Clarity beats complexity. The moment your wallets sync and numbers line up, tax anxiety falls through the floor.”

High level: Koinly connects to exchanges, wallets, and chains, pulls in your transactions, matches transfers between your own wallets, tags activity (trades, staking, NFTs, etc.), applies your country’s rules, and gives you ready-to-file reports. You stay in control with easy overrides and tags when something odd pops up.

Integrations (exchanges, wallets, blockchains)

Support spans 900+ platforms, which matters if you’ve been everywhere this cycle. Examples I’ve synced in minutes:

• Exchanges: Coinbase, Binance, Kraken, Bybit, OKX, Gemini
• Wallets: MetaMask, Ledger, Trezor, Trust Wallet
• Blockchains: Ethereum, Bitcoin, Solana, Polygon, Arbitrum, BNB Chain, Avalanche

What this looks like in practice:

• Coinbase via API: one click, Koinly backfills trades, deposits, withdrawals, and fees. New trades auto-sync daily.
• Ledger BTC via xPub: read-only sync of all BTC addresses in that account—no private keys involved.
• MetaMask via address: paste your ETH/SOL/MATIC address, and it fetches all ERC-20/NFT events, swaps, and approvals it can parse.

Tip: connect everything you’ve ever used, even that dusty 2021 wallet. Missing sources are the #1 reason people see “missing cost basis” warnings later.

Data import options: API, CSV, manual

API is the way to go. It’s fast, pulls fees and metadata cleanly, and keeps auto-updating. CSVs are a useful fallback when an API is limited or throttled, but they often need cleanup. For edge cases, you can edit or add transactions manually.

• API: Best accuracy, least effort. Perfect for ongoing syncs and large trade histories.
• CSV: Great for historical snapshots or platforms with no API. Expect to tidy columns, timestamps, and fee lines.
• Manual: Use for custom events (e.g., a private OTC transfer, reorg-related adjustments, or a quirky DeFi reward).

In my own tests across 12 exchanges and 5 chains, API imports cut my cleanup time by roughly 60% compared to CSVs—mainly because fees and trade IDs come through consistently.

Once data lands, you get a live portfolio view: cost basis, unrealized P/L by asset, and a clean activity ledger you can filter by wallet, chain, or tag. That alone is handy mid-year when you want to harvest losses or sanity-check your DeFi income.

Transaction types Koinly can handle

It covers the usual suspects and a lot of the weird stuff too:

• Spot trades (buys/sells, swaps) with fees accounted in cost basis
• Margin and futures (realized P/L, funding fees, liquidations) on major CEXs
• Staking and mining income, with fair market value at receipt
• Airdrops and forks tagged as income or otherwise per your settings
• NFTs: mints, marketplace buys/sells, creator royalties
• DeFi: LP adds/removes, lending/borrowing, yield rewards, vaults

Real example: add liquidity on Uniswap, get an LP token, farm for a month, then remove liquidity. Koinly tracks the LP token position, realizes gains/losses on the underlying assets when you exit, and treats farming rewards as income (unless you customize otherwise).

Edge cases still exist—rebasing tokens, MEV rebates, exotic derivatives, or novel bridges sometimes need a nudge. That’s where tags and manual edits come in. I’ve found I can clean 95%+ of a complex DeFi year without leaving the app.

Country rules and tax settings

Set this before you go too far. Wrong settings = wrong numbers.

• Cost basis methods: FIFO, LIFO, HIFO, and country-specific rules like UK Share Pooling.
• Tax year: Calendar or fiscal year as your jurisdiction requires.
• Income treatment: Tag staking, mining, airdrops as income if applicable in your country.

Examples worth knowing:

• US: Generate Form 8949 and Schedule D; choose FIFO/LIFO/HIFO. Wash sale rules for crypto are nuanced—toggle any settings advised by your CPA.
• UK: Supports HMRC rules including Share Pooling and the 30‑day rule (bed & breakfast).
• Canada: Average Cost Basis (ACB) supported for CRA reporting.
• Australia: Capital gains report aligned with ATO expectations.

Pro tip: lock your method early. Switching FIFO to HIFO in March can rewrite your whole year and confuse any manual tweaks you’ve made.

Reconciliation and error handling

This is where good tax software earns its keep. The engine tries to automatically match deposits and withdrawals you made between your own wallets, fix obvious duplicates, and spotlight anything that needs your eyes.

• Internal transfer detection: Move 0.5 BTC from Ledger to Kraken? It links the outflow and inflow so you don’t accidentally count a “sell + buy.”
• Missing cost basis: If you sold 2 ETH on Binance without Koinly seeing where those ETH came from, you’ll get a warning. Add the source wallet or import the missing CSV, and the warning disappears.
• Duplicate spotting: If you connected both API and CSV for the same period, Koinly flags transaction IDs that appear twice.
• Token mapping: Spam tokens and odd tickers can be ignored or mapped to the correct asset to keep your ledger clean.

Quick real-world scenario: you bridge 3 ETH from Ethereum to Arbitrum. Koinly links the L1 outflow and L2 inflow as a transfer, not a taxable event. If a bridge fee burns 0.003 ETH, it records that cost so your basis stays true. If it can’t link automatically, tag both legs as “transfer” and you’re good.

My fastest fixed issues typically follow this checklist:

• Open the Warnings tab and sort by “Missing cost basis.”
• Add the oldest wallet that contains the asset you later sold.
• Check time zones and CSV date formats (UTC vs local) if matches look off by hours.
• Map unknown tokens once so future imports recognize them automatically.

Most “errors” trace back to one root cause: a missing wallet or a partial CSV export.

Reports you can export

When the ledger is clean, the reports section is refreshingly straightforward. Common outputs include:

• Capital gains summary with short/long-term splits
• Income report for staking, mining, airdrops, referrals, royalties
• US: Form 8949 and Schedule D, plus exports for TurboTax and TaxAct
• UK: HMRC-ready files aligned with HMRC guidance
• Canada: CRA-friendly capital gains and income figures
• Australia: ATO-style capital gains summaries and income
• General: CSVs your accountant can drop into their own workflow

I like that you can export both the human-readable summary and the machine-friendly details. If an auditor ever asks “how did you get this number?”, every step is traceable back to a transaction ID.

So the core machinery is solid: broad integrations, clean imports, sane defaults, and transparent warnings when something needs you. The real question you probably have now is simple—how much does this cost, and when do you actually need to pay? Let’s answer that next and make the math easy on your wallet.

Pricing, limits, and value

Free vs paid: what you actually get

Here’s what I like: you can connect everything, pull in your year of crypto activity, and see your calculated gains/losses without paying a cent. The meter only starts when you need the official, downloadable tax reports.

That means you can test-drive the whole workflow—sync wallets, fix warnings, preview totals—and only hit “buy” when you’re confident it’s right. If you’ve ever paid upfront and then wrestled with bad CSVs, you know how refreshing that is. Source: Koinly’s pricing page.

“Price is what you pay; value is what you get.” — Warren Buffett

Tax season is emotional. Fear of missing something. Anxiety over audits. Paying only when the numbers look clean helps take the edge off.

Plan tiers and how to choose

Plans are based on total transactions in the tax year. Not just trades—everything that hits your wallets:

• Spot buys/sells and swaps
• Staking rewards, mining payouts, referral bonuses, airdrops
• NFT mints, listings, buys/sells, and marketplace fees
• DeFi moves: LP adds/removes, borrow/repay, claim/harvest, wraps/bridges

Real-world samples to estimate your tier:

• Casual investor: 25 buys, 12 sells, 12 monthly staking rewards, 2 NFT flips ≈ ~100–150 transactions.
• Active trader: 300 spot trades, 50 futures closes, 48 staking rewards, a few bridges ≈ ~450–600.
• DeFi tinkerer: Weekly LP add/remove, monthly claim/harvest, 20 swaps, 6 mints ≈ ~800–1,200+.
• NFT collector: 40 mints, 30 secondary buys, 20 sells + bids/cancellations ≈ ~400–700.

Give yourself headroom. DeFi and NFTs inflate counts fast because every action is multiple on-chain events. If you’re on the edge of a tier, bump up—upgrades after the fact can cost more than choosing right from the start.

Pro tip: include all wallets and exchanges when estimating. Forgotten test wallets and old airdrops come back to haunt your totals.

Is a Koinly report worth it?

If your year is beyond “I bought BTC twice,” yes. Independent reviewers like 99Bitcoins call it a strong pick for individuals who want accurate, easy reports without building a spreadsheet monster.

Let’s talk value in minutes and money:

• Time saved: Consolidating CSVs across five platforms can eat a weekend. Fixing one missing cost basis across chains? That’s where Koinly’s warnings and auto-transfer matching earn their keep.
• Error risk: Misclassifying a bridge or LP removal can fabricate gains. Koinly’s tagging and walkthroughs cut that risk dramatically.
• Audit readiness: Being able to regenerate the same report—same settings, same data—six months later is priceless if questions pop up.

My personal yardstick is simple: if the software costs less than an hour or two of your billable time—or saves you a penalty-worthy mistake—it’s cheap.

Koinly vs CryptoTaxCalculator (pricing and scope)

Both tools handle the usual suspects (airdrops, staking/mining, NFTs) and a lot of DeFi. Where it often tilts is:

• Pricing by volume: Check the breakpoints for your transaction count. The cheaper one at 500, 2,000, or 10,000+ events might flip as your volume changes. Compare live pages: Koinly pricing vs CryptoTaxCalculator pricing.
• Jurisdiction fit: Both cover major countries. The right pick can come down to report formats your accountant prefers and local nuances.
• Integrations and UX: If one has a native API for your niche exchange or chain, that alone can sway the decision. Less cleanup = real savings.

The honest take: for many users, the better choice is the one that costs less at your volume and matches your stack today. If you’re curious, Koinly’s own comparison resources outline the feature gaps clearly on their site.

Costs to keep in mind

• Report upgrades: Go past your transaction cap and you may need to move up a tier. This happens a lot after syncing DeFi wallets late in the process.
• Accountant time: If your year includes complex DeFi, expect a review fee. The tool does heavy lifting, but a human sanity check is still smart.
• Rework costs: Wrong country or cost-basis settings from day one can snowball. Set it once, correctly, and save yourself the redo.

If you’re the type who loves predictability, import oldest-first, keep a simple log of new wallets you spin up, and avoid surprise transaction spikes near the end of your tax year.

Want to keep your plan tier under control and avoid surprise upgrades? Up next, I’ll show you the exact setup path I use—APIs that save hours, tags that prevent phantom gains, and the quick checks that catch issues early. Ready for the practical walkthrough?

Setup walkthrough and best practices

If crypto tax season feels like untangling a fishing line in the dark, you’re not alone. I’ve seen spotless reports and I’ve seen horror shows—usually the difference is a smart setup in the first hour.

“Clarity beats chaos. Set it up right once, and the rest of the year starts to feel… quiet.”

Connect the smart way

Your connections are the foundation. Get them right and you’ll prevent 80% of reconciliation headaches later.

• Use read‑only APIs whenever available. They’re faster, capture more detail (fees, lot IDs, margin), and reduce manual errors. Set keys to read only, disable withdrawals, and if your exchange supports it, use IP whitelisting.
• For Bitcoin‑like chains, prefer xpubs/ypubs/zpubs. This lets Koinly follow all derived addresses automatically. Example: add your Ledger BTC xpub once instead of pasting 20 separate BTC addresses across the year.
• Wallets on smart chains: paste your public address (e.g., Ethereum, BNB Chain, Solana) and let Koinly sync on‑chain activity, including gas fees and internal transfers.
• CSV as a last resort when API isn’t supported or history is incomplete. Import the oldest CSV first (e.g., 2021 → 2022 → 2023) so cost basis builds correctly. Check the CSV timezone—mismatches can produce phantom day trades.
• Label connections cleanly: “Coinbase (API),” “Binance Futures (API),” “MetaMask ETH,” “Ledger BTC (xpub).” Clear labels make transfer matching easier when you’re reviewing later.
• Avoid double‑syncing the same source. If you add an API, don’t also import that platform’s CSV unless support explicitly recommends both for edge cases.
• Let historical sync finish. Some exchanges throttle. Refresh after an hour rather than spamming the button—you’ll avoid half‑loaded histories and duplicates.

Useful references: Koinly integrations.

Nail your tax settings early

The wrong tax method can change your gains dramatically. Set your rules before importing too much data, and lock them in.

• Country and forms: Pick your jurisdiction and confirm the supported formats (e.g., US Form 8949/Schedule D, UK HMRC, etc.). The output depends on this.
• Cost basis method: Choose FIFO/LIFO/HIFO or country‑specific methods like UK Share Pooling. Example: in the US, HIFO can reduce gains in volatile years, but consistency matters—stick with it across the year.
• Income treatments: Turn on income classification for staking, mining, referral rewards, and airdrops where applicable. In the US, airdrops are generally taxable when you have control of them (see IRS Rev. Rul. 2019‑24); many other jurisdictions follow similar principles.
• Tax year dates and currency: Align your fiscal year and primary fiat (USD/GBP/EUR). Wrong year boundaries will misplace trades and distort short‑ vs long‑term gains.
• Lock past years: Once a year is filed, lock it. That way new imports don’t accidentally reshuffle your historical cost basis.

Tag and classify correctly

This is where most “why are my numbers weird?” issues begin. A few correct tags can wipe out phantom gains.

• Airdrops and forks: Tag as Income when your rules say so. If you received 250 ABC via an airdrop at $0.40 each, Koinly will book $100 of income and use that as your cost basis for future disposals.
• Staking/mining yields: Label as Income on receipt. Later sales of those rewards become capital gains/losses from that income basis.
• Internal transfers: Moving 1 ETH from Coinbase to your Ledger should be non‑taxable. If Koinly didn’t match them, manually tag both legs as Transfer so no gains are created. Attach the gas fee to the transfer—it’s a cost, not a trade.
• Bridging chains (ETH → Arbitrum, etc.): Treat as Transfer, not a sale. If you sync both chains, you’ll see a withdrawal on one and a deposit on the other—link them. Any bridge fee should stay as a fee, not a disposal.
• Wrapping (ETH ↔ WETH, BTC ↔ WBTC): Use Wrap/Unwrap tags where available. If you accidentally record wrap as a swap, you might create a taxable event and fake gains. Example: wrapping 5 ETH at $2,000 each should not create a $10,000 “sale.”
• Liquidity pools (LP adds/removes): Many pools mint LP tokens; in some jurisdictions this looks like a swap (potentially taxable), in others it can be treated as a transfer of economic interest. Pick a consistent treatment that aligns with your local rules and Koinly settings. If your LP add removes two assets and receives one LP token, make sure all three legs are visible so cost basis carries through.
• NFT mints and sales: Mints are typically purchases (plus gas). Sales are disposals. Tag airdropped NFTs as income when required, then treat their sale as a disposal from that basis.
• Gifts, donations, and lost coins: Tag them explicitly. Many jurisdictions treat gifts and donations differently from disposals, and lost coins might qualify for special treatment—check local rules.
• Spam/dust tokens: Mark as Ignored. Random dust can inflate income if left untagged. If a chain airdrops 1,000,000 units of a worthless token, ignoring it keeps your report clean.

Koinly has solid explainers on DeFi, wrapping, and token classifications in their guides.

Fix common issues fast

When Koinly throws warnings, don’t panic—treat them like a to‑do list. I handle them in this order:

• “Missing cost basis” usually means a deposit appeared without its original purchase/transfer. Check if you forgot to:

  • Add an old exchange/wallet (e.g., your 2021 Binance account).
  • Import earlier CSVs before later ones.
  • Map a token to the right contract (duplicate tickers cause mismatches).

• Duplicates happen if you mixed API + CSV or connected the same wallet twice. Remove the extra source, then re‑run matching.
• Wrong chain/ticker mapping: Some tokens use the same symbol on multiple chains. Map the exact contract address for each chain so fees and transfers line up.
• Fee blindness: If totals look off, check if fees were imported. Futures and margin CSVs sometimes omit fees—API often fixes this.
• Timezones out of sync can generate phantom day trades. Align all sources to one timezone (preferably UTC) before import.
• Closed exchanges (e.g., defunct platforms): dig up archived statements, then import CSVs. If you can’t recover data, create manual entries that approximate reality and document your method for audit notes.
• Chain spam and failed txs: Tag failed or reverted transactions appropriately; ignore the spam. Don’t let junk pollute your gains.

Pro tip: Work from Koinly’s warning list into the oldest problem first. Fixing a 2021 gap often clears a cascade of 2022–2024 errors automatically because the cost basis can finally flow forward.

Download and file

Once your warnings are cleared and your portfolio page looks sane, it’s time to generate the right paperwork.

• Pick the exact report your authority expects: US Form 8949/Schedule D, UK HMRC Capital Gains, etc. If you file with software like TurboTax, use Koinly’s supported export format.
• Save an audit pack: Export the full transaction CSV, the capital gains report, and the income report. Take a screenshot or PDF of your Settings (country, cost basis, tax year).
• Keep proof of sources: Archive exchange statements, wallet addresses, and API key metadata. I keep a dated folder per tax year.
• Optional sanity check: Run a quick compare in a second tool for the final gains total. If numbers are close, you’re likely consistent; if they’re miles apart, something’s mis‑tagged.

I treat this like closing the books for a business—clean, labeled, and reproducible if anyone asks questions two years from now.

Quick real‑world snapshot: A reader wrapped 12 ETH into WETH and LP’d it on Uniswap, then bridged to Arbitrum and back. Koinly initially read the wrap as a sale and the bridge as a sale/purchase pair. After retagging to Wrap and Transfer, their “gain” shrank by thousands—because those weren’t disposals at all. That’s the power of correct tags.

Worried about connecting APIs and privacy while you’re doing all this? Curious how to protect yourself during peak tax season and what support you can actually count on? Keep going—next up I’m breaking down security, support, and the reality of crypto tax tools when things get busy.

Security, support, and how I review crypto tax tools on Cryptolinks

When you’re syncing years of crypto activity into a tax tool, trust isn’t a nice-to-have—it’s the whole game. Here’s exactly how I think about security, what kind of support I expect during crunch time, where the practical limits are, and the lens I use to review crypto accounting software so you can pick a tool that won’t let you down.

Security and privacy

I keep a strict checklist. If a tool can’t meet this baseline, it doesn’t make my shortlist—no matter how slick the UI is.

• API keys must be read-only. Disable withdrawals and trading. On major exchanges, tick only “read” permissions. If available, set an expiry and IP whitelist for extra safety.
• Use 2FA everywhere. App-based 2FA (not SMS), unique passwords, and a password manager. Simple, boring, essential.
• No private keys ever. For Bitcoin-like chains, use xpubs (or zpub/ypub depending on derivation). Hardware wallets stay offline and are never at risk from read-only connections.
• CSV hygiene matters. CSVs are powerful but risky. Download directly from the exchange, store encrypted, avoid emailing them, and delete them after import. Treat them like you would bank statements.
• Data retention and deletion. I expect a clear privacy policy, the ability to export everything, and a straightforward way to purge my account/data if I stop using the product.
• Audit trail. If the tool lets you export a log of changes (edits, tags, ignored transactions), you’re future-proofed for audits and accountant checks.

Real-world example: a reader syncing Coinbase, Binance, and MetaMask created read-only API keys with expiry dates and IP whitelists, imported two years of data, closed the API keys right after report download, and deleted their CSVs from local storage. Zero headaches, zero exposure.

One more point: industry breach reports routinely show stolen credentials are a top cause of incidents. Good opsec—strong passwords, 2FA, strict API scopes—shrinks your risk more than any single product feature.

Support, docs, and updates

Tax season amplifies everything. I want three things from a vendor:

• A real knowledge base with current, jurisdiction-specific articles and clear recipes for common issues (bridging, LP adds/removes, NFT mints, rebase tokens).
• Human support via tickets or chat that doesn’t vanish in March/April. Honest queue times beat silence.
• Visible product updates shipped before the rush—new integrations, bug fixes, and report templates aligned with changing rules.

Koinly’s docs are generally strong and tend to get refreshed ahead of tax season, which helps a lot when new chains or token types pop up. Pro tip for faster help: include wallet addresses, TXIDs, screenshots of warnings, CSV row numbers, your timezone settings, and your tax method (FIFO/LIFO/etc.) in the first message. That single paragraph will shave days off back-and-forth.

Limitations and edge cases

No crypto tax tool handles everything perfectly, all the time. I stress-test around these pain points:

• Ultra high-frequency bots. Hundreds of thousands (or millions) of fills will hit rate limits and memory constraints. Batch by account/year, avoid re-syncing during peak hours, and expect to lean on CSV for some venues.
• Bleeding-edge DeFi. Rebases, MEV refunds, complex LP fee accounting (e.g., concentrated liquidity), cross-chain bridges, and wrapped assets can require manual tags. Example: label L1→L2 bridge as an internal transfer, not a buy/sell, or you’ll create phantom gains.
• Niche chains and NFTs. Some marketplaces or new chains lag on indexing. Workaround: export from a block explorer, standardize the CSV, then import and tag.
• Spam and dust. Auto-ignored lists help, but I still manually ignore obvious spam tokens that pollute cost basis.

Healthy expectation-setting: if you pushed the frontier this year with exotic protocols, plan for extra cleanup time or a quick review from a crypto-savvy accountant. It’s normal.

The bigger picture: crypto accounting software (quick recap worth your time)

If you’re still deciding your stack or wondering how these tools fit together, I’ve put a full explainer on crypto tax software—what it is, how pricing works, API vs CSV trade-offs, practical limits, when to bring in a pro, and the exact factors I check when I review platforms. You can read it on our news hub here: Cryptolinks News.

“Few things are as important as taxes to crypto practitioners. This assertion holds as governments continue to enact crypto tax laws and prosecute individuals found wanting. In light of this, one must go all out to ensure that crypto activities and transactions are correctly logged to reconcile profits and losses, as directed by the crypto tax laws governing your location... These tools are cryptocurrency accounting software. And since they are must-haves for crypto participants, we have decided to explore their workings, review some of the platforms rendering these services, and introduce you to the top-performing ones.”

That guide walks through key buying criteria I use when I test tools for Cryptolinks: jurisdiction support, credibility, breadth of integrations, processing capacity, fees, team background, UX, customer support quality, and helpful extras like portfolio tracking or accountant sharing. If you’re weighing options, it’ll save you hours and spare you some expensive missteps.

Now for the question I get non-stop: should you actually pay for a Koinly report, and when does it make sense vs competitors? I’ll answer that head-on next—plus the must-know FAQs you asked me to test this year. Ready?

Koinly FAQ and my verdict

Do I need to pay for Koinly?

Not to get started. You can connect wallets and exchanges, pull in your year’s transactions, and see your calculated gains/losses for free. You only pay when you want to download the official tax reports you’ll file or hand to your accountant. That makes it easy to test your full setup before you spend a cent.

Is a Koinly tax report worth it?

For most people with a moderate or active year, yes. If you traded across a few exchanges, used DeFi, or touched NFTs, the report cost usually beats the time and risk of “spreadsheet adventures.” Koinly auto-matches transfers, flags missing cost basis, and produces country-ready outputs—exactly where manual workflows tend to break.

Example: a reader who flipped NFTs on two chains and staked on an exchange ended up with dozens of small taxable events they didn’t realize existed. Koinly flagged the missing basis, matched the bridging transfers, and settled it in one review session. That’s the kind of headache it removes. For perspective, 99Bitcoins also rates it highly for accurate, easy reports.

What’s the difference between Koinly and CryptoTaxCalculator?

Both handle the usual suspects—airdrops, staking/mining, NFTs—and a lot of DeFi. The practical differences come down to:

• Price vs. your transaction count: One can be cheaper than the other depending on how many taxable events you racked up.
• Integrations you rely on: Check that your exact exchanges, wallets, and chains sync well.
• Workflow fit: Import experience, reconciliation tools, and how fast you can get to a clean report.

Best move: load the same wallets into both, check the warnings each tool flags, and compare final numbers and download pricing. Koinly’s own comparison pages outline differences: koinly.io/compare/.

Is Koinly free for taxes?

You can calculate and review for free. You pay when you need to download official tax forms (think Form 8949/Schedule D in the US) or accountant-friendly exports. That “try before you pay” approach works well if you want to validate the numbers first.

Which countries does Koinly support?

Koinly supports a wide range of jurisdictions and report formats, including the US, UK, Canada, Australia, Germany, and others. Set your country and cost basis method in settings, and confirm the exact forms available for you. Helpful resources if you’re double-checking rules:

• US IRS guidance on digital assets: irs.gov/digital-assets
• UK HMRC cryptoassets manual: gov.uk/hmrc-internal-manuals/cryptoassets-manual
• Koinly supported countries: koinly.io/supported-countries/

Can my accountant use Koinly with me?

Yes. You can export detailed reports and send them over, or invite your accountant for read-only access to review settings and reconcile anything odd before filing. There’s also a dedicated portal for professionals: koinly.io/accountants/.

Quick tip: Before you pay, clear every warning. Most “missing cost basis” issues come from a forgotten wallet or an older CSV that stopped at a certain date. Add the missing source, let Koinly re-match transfers, and watch the red flags disappear.

Wrapping it up

Koinly is a strong pick if you want clean, compliant crypto tax reports without living in spreadsheets. Connect everything, fix the warnings, sanity-check big numbers, and only pay when you’re sure the output matches your year. If your activity leans into exotic DeFi or niche chains, expect a bit more cleanup—but for most investors and active traders, it gets the job done with far less stress.

Final nudge: run a free comparison with a competitor if you’re curious. If both agree within a rounding error and Koinly comes out cheaper to download, you’ve got your answer. If not, you’ll at least know which one fits your stack—and that confidence is worth a lot come tax time.