The Ultimate Guide to Using Koinly for DeFi and NFT Traders

Ameli

— 1 min read

Introduction

  • Hook: DeFi and NFT trading have skyrocketed, but tracking gains and losses can be a nightmare.
  • Introduce Koinly as the solution that handles complex crypto transactions with ease.
  • Promise a step-by-step guide on using Koinly for these advanced users.

1. Why DeFi and NFT Transactions Are Taxing

  • Multiple wallets, smart contracts, and decentralized exchanges make manual tracking nearly impossible.
  • Examples:
    • NFT purchases, sales, and royalties
    • Staking rewards
    • Yield farming and liquidity pool earnings
  • Risk: mistakes can lead to penalties or audits.

2. How Koinly Handles Complex Transactions

2.1. Automatic Integration With Multiple Chains and Protocols

  • Ethereum, Solana, Polygon, Avalanche, Binance Smart Chain, etc.
  • Import DeFi wallets, NFT marketplaces, and staking accounts via API or CSV.

2.2. Tracking NFT Transactions Accurately

  • Recognizes NFT purchases, sales, and royalties.
  • Calculates gains based on cost basis.
  • Handles fractional NFT ownership.

2.3. DeFi and Staking Made Simple

  • Tracks liquidity pool deposits, withdrawals, and rewards.
  • Handles token swaps, lending interest, and farming yields.
  • Converts all transactions into tax-compliant formats.

3. Step-by-Step Guide to Using Koinly for DeFi/NFT Traders

Step 1: Connect All Wallets and Marketplaces

  • Detail which wallets and marketplaces are supported.
  • Explain API integration and CSV uploads.

Step 2: Import Transaction History

  • Explain how to import historical data from multiple chains and protocols.
  • Tips to ensure no transactions are missed.

Step 3: Categorize Transactions

  • Income: staking rewards, airdrops, royalties
  • Capital gains: NFT sales, token trades
  • Adjust categories if Koinly mislabels.

Step 4: Generate Tax Reports

  • Country-specific tax reports
  • Export options for accountants or tax software
  • Include reports for audits or personal records

4. Common Pitfalls for DeFi and NFT Traders

  • Forgetting small transactions across multiple chains
  • Misclassifying staking or yield farming rewards
  • Not accounting for NFT royalties
  • How Koinly prevents these errors

5. Advanced Tips for DeFi and NFT Tax Efficiency

  • Track transactions regularly, not just at year-end
  • Use Koinly’s “portfolio view” for better insights
  • Combine Koinly data with professional tax advice for complex strategies

Conclusion

  • Recap: Koinly simplifies DeFi and NFT reporting, reduces errors, and saves hours of work.
  • Encourage traders to start using Koinly early to stay organized and tax-compliant.

💡 Optional Add-ons:

  • Include a case study: “Alex’s NFT flips in 2025 and how Koinly handled 200+ transactions seamlessly.”
  • Small FAQ section:
    • “Can Koinly track fractional NFTs?”
    • “Does Koinly support all DeFi chains?”
    • “How does Koinly calculate gains on liquidity pools?”

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