Crypto Tax 101: How to Do Your Crypto Taxes Using Koinly

Ameli

— 1 min read

Cryptocurrency taxes can feel confusing, especially if you trade often or use multiple wallets. With rules getting stricter worldwide, reporting crypto activity correctly is no longer optional. This is where Koinly helps by turning complex blockchain data into clear tax reports.

What Is Koinly?

Koinly is a crypto tax and portfolio tracking platform. It connects to your exchanges, wallets, and blockchains, collects your transaction history, and calculates your taxable gains, losses, and income automatically.

It does not hold your crypto — it only reads transaction data.

Step-by-Step: How to Do Crypto Taxes with Koinly

1. Create a Koinly Account

Start by signing up on Koinly using your email. Once logged in, you’ll be asked to choose your country, as tax rules differ by region.

2. Connect Wallets and Exchanges

You can add data to Koinly in two main ways:

  • API connection (recommended): Automatically syncs transactions from exchanges.
  • CSV upload: Useful if an API isn’t available.

Koinly supports hundreds of platforms including Binance, Coinbase, MetaMask, Trust Wallet, and many blockchains.

3. Review and Fix Transactions

After importing data, Koinly categorizes transactions such as:

  • Trades
  • Transfers
  • Staking rewards
  • Mining income
  • Airdrops
  • NFTs and DeFi activity

You should review flagged or missing transactions and fix errors like:

  • Duplicate transfers
  • Incorrect labels
  • Missing purchase prices

This step is important for accurate tax calculations.

4. Understand Your Tax Summary

Koinly calculates:

  • Capital gains and losses
  • Crypto income
  • Fees paid
  • Unrealized gains (for portfolio tracking)

You’ll see a clear tax overview before paying for any report.

5. Download Your Tax Reports

Once everything looks correct, choose a tax plan and download reports such as:

  • Capital gains report
  • Income report
  • Complete transaction history
  • Tax forms compatible with accountants or tax software

These reports can be used for self-filing or shared with a tax professional.

What Transactions Are Taxable?

Depending on your country, taxable crypto events may include:

  • Selling crypto for fiat
  • Trading one coin for another
  • Receiving staking or mining rewards
  • Airdrops and referral bonuses
  • NFT sales

Simple transfers between your own wallets are usually not taxable.

Why Use Koinly?

✔ Saves time compared to manual tracking
✔ Supports DeFi, NFTs, and multiple chains
✔ Reduces errors and missed transactions
✔ Useful for both beginners and active traders

Final Thoughts

Crypto taxes don’t have to be stressful. By using Koinly, you can automate most of the work, reduce mistakes, and stay compliant with tax laws. The key is importing accurate data and reviewing transactions carefully before filing.

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