Crypto Taxes

Doing your taxes is confusing enough, but when you add in cryptocurrency, it can make your head explode. Crypto taxes are not easy.

Regulations vary by jurisdiction, so you’ll need to check your country’s tax laws when it comes to cryptocurrency.

Calculating Crypto Taxes

Generally speaking, if you sell crypto, you’ll need to pay capital gains tax on the profits. If you stake crypto, you’ll need to pay income tax on the rewards. Hodling crypto does not usually need to be reported on your taxes.

You can’t avoid paying tax on your cryptocurrency, so don’t even try it. Find out what you need to report in your country so that you don’t find yourself with an unexpected tax bill.

We recommend keeping track of all of your crypto transactions including deposits, withdrawals, staking rewards, purchases and sales. You will also need to keep track of dates and the value of the crypto in your local fiat currency at the time of the transaction.

It’s a lot to keep track of and calculate, but you can instead use a crypto tax calculator that can do all of it for you.

Koinly Crypto Tax Calculator

Whether you’re in the USA or elsewhere, Koinly is a great tool for people looking for help navigating their crypto taxes.

With Koinly, you can connect to most crypto exchanges and wallets including hardware wallets. You can import your transactions automatically, or upload a csv file of your transaction history.

In your Koinly dashboard, you can see an overview of your profits and losses. You can also generate all the tax reports you need for your country to accurately pay your taxes.

Koinly does all the hard work for you so you don’t have to spend hours with a calculator and a converter. It automatically breaks down and categorizes your transactions for you.

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