Filing crypto taxes is mandatory but complicated. Every swap, airdrop and trade is a taxable event. Tracking tools automate this process.

Why You Need a Crypto Tax Tool

• Every crypto sale or exchange generates a taxable gain/loss
• Airdrops may be taxed as income
• Staking generates reportable returns
• Without tools, manual calculation is practically impossible

The Best Tools

Koinly

Koinly is the most popular crypto tax tracking tool.

Advantages:

• Supports 350+ exchanges and wallets
• Automatic API import
• Compatible with multiple country tax codes
• Automatically detects staking, airdrops and transfers
• Free plan for tracking (paid only for tax reports)

Ideal for: Most users

CoinTracking

CoinTracking is the most comprehensive tool for advanced portfolios.

Advantages:

• Advanced portfolio analysis with charts
• 13 different tax calculation methods (FIFO, LIFO, HIFO...)
• DeFi and complex transaction support
• API for automatic import
• Tax reports for multiple countries

Ideal for: Active traders and complex portfolios

What to Report

• Capital gains/losses: every sale or swap
• Income: staking, lending, airdrops
• Foreign accounts: if required by your jurisdiction
• Annual tax return: include all crypto activity

How to Start

1. Connect your exchanges: Binance, Coinbase, OKX, etc.
2. Import wallets: connect your DeFi wallet
3. Review transactions: verify everything imported correctly
4. Generate tax report: download PDF with your tax basis
5. File your return: use the information for your tax return

Important Tip

Start using a tracking tool from day one. Trying to reconstruct years of transactions is much harder and more expensive than tracking in real time.

Conclusion

Crypto tax tools are not a luxury, theyre a necessity. With Koinly or CoinTracking, filing crypto taxes goes from a nightmare to an automated process taking minutes.