Cryptocurrency has become a popular investment option recently. The craze about crypto largely zeroes down to the large profits that you can make out of it. The volatility of cryptocurrency as an asset is powerful enough to make you a millionaire in no time – provided you have the appetite to take risks!
Despite criticism, cryptocurrencies are slowly coming into the mainstream economic channels, and it is expected that real-life monetary transactions would eventually make space for crypto as a valid, government-acknowledged mode of payment. Who knows, maybe your local grocery store or your favourite breakout escape room in Bangalore might just start accepting payments in Ether?
Taking the current scenario into account, investing in crypto can be highly beneficial, given you test the waters carefully. However, while you continue to engage in trade and transactions using cryptocurrency, you also need to pay certain taxes. If you invest in cryptocurrency daily, you would surely have a lot of transactions that you make annually.
Maintaining proper accounts for each of these transactions can be a tiresome process. Stuck in such a situation, you can turn to a suitable crypto tax software to do the work for you.
What Basic things Should you Keep in Mind?
While looking for a suitable Crypto tax software to do your accounts, look for something simple and easy to use. You don’t need to work with fancy and rather complicated programs. The primary priority for the software should be to maintain and keep proper accounts of your cryptocurrency transactions.
What are some of the Top Crypto Tax Software?
While there are several options to choose from as you look for a suitable Crypto tax software, here are the top ones that can serve your purpose seamlessly.
Koinly is one of the easiest and most user-friendly Crypto tax software that you will ever come across. Its automatic data synchronisation feature makes it all the more suitable for anyone who uses it. You can use Koinly to easily connect it to all of your wallets, exchanges, and blockchain addresses, hence providing you an overview of your total investment.
You can use it to connect with up to 353 crypto exchanges, 74 wallets, and 14 blockchain addresses. You can also use Koinly to export your transaction details to any other software. Yet another aspect of it that makes it so special is how it shows you real-time details of profit and loss, alongside tax liabilities.
2. Token Tax
What makes Token Tax widely accepted amongst cryptocurrency users is how easily it integrates with all forms of crypto exchanges seamlessly. It is designed with the sole aim of making complicated tax calculations seem easier. It makes your filing of taxes much less hectic than was possible earlier.
Furthermore, the automatic features that you can access on Token Tax will surely enhance your tax reporting process. For instance, it will automatically integrate itself with your exchanges to gather the necessary data. The audit assistance that you can avail of here would also be greatly beneficial to your use. On Token Tax, all forms of crypto exchanges are supported. What makes Token Tax so greatly availed by many is surely how it not only calculates but also helps in filing your taxes.
ZenLedger is also another crypto tax software that you can use. With this, you can work on integrating with over 400 exchanges. It has significantly grown to serve about 15,000 customers worldwide and aims to provide simplistic service to all its customers.
ZenLedger works by calculating your crypto profits and losses by using your entire transaction history. With this, you can even integrate with TurboTax if you wish to. By choosing to use ZenLedger, you also gain free access to Tax Pro! In ZenLedger, you can also avail tax-loss harvesting tools and unified accounting reports as per your ease.
The only limitation of using this crypto tax software is you can only track up to 25 transactions here. However, for those of you who wish to hold on to their assets, using ZenLedger can be of great use to you!
Accointing is best known for its amazing portfolio analysis tools. Not only can you track your crypto expenditures here, but you can also use it as tax reporting software! It helps you to keep track of the current market concerning cryptocurrency and better analyse your portfolio. It also offers you tax-loss harvesting reports to make the entire process of filing your taxes much easier.
With Accointing, you are empowered to explore the crypto market at your will. You can also use this software to accurately calculate your profits and losses. The tax reports that are prepared on the software for you can be downloaded at your convenience to serve as tax reports. The free version of this crypto tax software can be immensely useful for beginners, though it provides tax reports of only 25 transactions.
Suppose you are looking for software that would serve best for all your taxation needs, go for TaxBit. It works on seamlessly syncing all your data to provide you with the final tax reports. What makes it so much exciting to look forward to is certainly how it supports over 150 exchanges and can be easily integrated with over 2000 kinds of currencies.
By using TaxBit, you can even export transaction reports if you so want. Also, do not forget to make use of the highly informative and detailed dashboard that welcomes you on TaxBit. With clear details of your current tax position, asset balance, and even unrealized profits or losses, the dashboard provides users with a comprehensive outline of it all!
You can also avail the tax-loss harvesting and portfolio analysis features on this crypto tax software for your purposes. Over time, TaxBit has gathered the reputation of being one of the most user-friendly crypto tax software available to date. Even the customer care service of it is also highly commendable. The automatic features of TaxBit, help you to sync all your transactions and thereby provide you with tax reports.
Even though cryptocurrencies have a very unpredictable rate of going up or down in value, people continue to invest their money in them for their huge margins of ROI. But if you don’t have your accounts organized well, it becomes much harder to gain profits from this investment. So, to make the entire process of calculating your profits/losses and demarcating your taxes, start using suitable crypto tax software today!
Aniya more is one of the brightest content writer at Breakout escape rooms. She is a passionate writer who loves to read books and explore different escape rooms. With a great work ethic, she spends most of her time researching and reading. When she is not working, she likes to relax with a cup of coffee and enjoy watching her favorite tv show or walking her dog peanut. You can find her on LinkedIn.