Cryptocurrency trading is conducted in an extremely volatile market, making it rather daunting to keep track of your current profit/loss balance across all the exchanges/markets you might be utilizing, searching for the most opportune rates.
Several portfolio management programs are available, but most of them require manual trade entries and lack the functionality to recognize altcoins. With the cryptocurrency market gradually acknowledging coins other than Bitcoin, even more traders will feel inclined to delve deeper into the "crypto ecosystem," making a good tax software ever more essential. Read our CoinTracking review for an overview of the services this tax software provides.
How CoinTracking Works
CoinTracking analyzes the trades you made with virtual cryptocurrency and calculates the resulting taxes. The whole process is pretty straightforward and can be encapsulated within the following few steps:
- Account creation – The process doesn’t even require that you provide your e-mail, although it’s highly recommended for security purposes. By signing up, you’ll be joining over 30,000 registered members.
- Trades import – You can import your trades to CoinTracking from 24 popular exchanges, including BitStamp, Bittrex, BTC-e, Kraken, Poloniex, and others. The import process is conducted via CSVs and APIs, so no access to your personal data is required.
- Analysis – With your account set up and trades imported, you can start utilizing numerous analyses and up-to-date data concerning all your trades, exchanges, and coins.
The CoinTracking tool operates 24/7, ridding you of keeping track of countless trades and your current profit-loss ratio. CoinTracking also has a truly engaging community, spread across numerous forums and similar online outlets.
CoinTracking is ripe with numerous features that can be sequestered into several larger categories:
- Personal analysis – This group of features offers a myriad of interactive charts, where you can monitor the state of your trades and coins. You will also receive calculations of key indicators that provide a thorough insight into your profit/loss, balances, and coin value. This will, in turn, enable you to better grasp your realized and unrealized gains.
- Trade Importer – The platform offers effortless CSV import from 24 exchanges, plus automatic API import. The system directly synchronizes with the blockchain and even offers export in PDF, Excel, XML, CSV, and JSON.
- Trades – The software will keep a complete list of your trades and fees, grouping them by exchange and allowing interactive search and the comment function.
- Coin charts and analyses – CoinTracking is definitely worthy of that name, but its tracking capability also extends to the past. Namely, it keeps history charts of all 4532 virtual coins while also always providing the latest prices for each one. It also provides a list of top coins by volume and by trade, alongside experimental Bitcoin forecast.
- Tax declaration – All trades will be calculated according to FIFO, HIFO, LIFO, and LOFO and prepared for your accountants and the tax office. The algorithm also incorporates fees consideration and variable parameters, depending on your country of residence.
Note that CoinTracking constantly improves the functionality of the platform and by that we mean providing significant upgrades almost every single month. They do boast their overenthusiasm for trading analysis and their app, but they genuinely “walk the walk” as well.
Privacy & Security
CoinTracking requires the least amount of personal information on the market by far. As we already mentioned in this CoinTracking review, the registering process doesn’t even demand your personal e-mail or any other data. So, the usual question of whether they’ll keep your sensitive personal information secure is rather mute, considering they don’t ask for any information to begin with. The platform also has no access to your exchanges and the website features an SSL certification and encryption. Honestly, we have yet to encounter a safer platform with less interest in “poking” around your personal data and business endeavors. SSL certification means that all data transfer between you and the server will be encrypted, so there is no security leak to be found anywhere in the entire structure.
- Excellent reporting structure, keeping track of all your trades and profit/loss balances
- 24 cryptocurrency exchanges covered for import
- Historic and current trends for all 4532 coins
- Comprehensive trend charts for Bitcoin and other cryptocurrencies
- Bitcoin forecast
- Excellent security of your personal and trading data
- Constant e-mail support
- Free sign up available with a live demo version
- 200 trade limit for free accounts