Cryptocurrency trackers are useful because they pull information from all your exchanges and wallets. This allows you to quickly see how your entire portfolio is performing at a glance.
If you need more than just a basic crypto tracker, CoinTracker could be worth a look. In addition to standard features like auto sync and the ability to import and export CSV files, CoinTracker is equipped with a powerful tax form generator. CoinTracker’s number crunching abilities may save you some work– and possibly money, if you’ve been relying on professional accountants– when it’s time to pay Uncle Sam.
- Generates IRS form 8949.
- Basic tracker is free.
- Syncs with popular crypto exchanges.
- Subscription plans are pricey compared to the competition.
- Doesn’t support margin trading, derivatives, swaps, or futures.
What Is CoinTracker?
CoinTracker is a web app that displays how well your cryptocurrency portfolio is doing and automatically generates tax forms. Portfolio tracking is free, but you have to pay to use the tax form generation feature.
CoinTracker co-founder Chandan Lodha explained his company’s aspirations to TechCrunch:
“The key reason we’ve had some success to date is due to focusing on the UX. There are tonnes of other tools but one thing that really resonates with our users is that we’ve made it easy to use for mainstream people, not just expert cryptography folks.”
CoinTracker was founded by two Google employees– Chandan Lodha and Jon Lerner.
- Chandan Lodha – Co-founder. Before starting CoinTracker, Lodha was an Associate Product Manager at Google. He became a Google[x] Product Manager in 2015.
- Jon Lerner – Co-founder. Lerner was a Software Engineer at Google. Prior to working at Google, he founded the IP telephony provider TextNow.
Tax form generation
CoinTracker subscribers can generate a capital gains report and the IRS form 8949– the form used to report capital gains for tax purposes.
Multiple accounting methods
All CoinTracker subscribers can use five different accounting methods to generate their tax forms: FIFO (First In, First Out), LIFO (Last In, First Out), HIFO (Highest In, First Out), ACB (Adjusted Cost Base) and share pooling.
Note: If you choose the wrong method, your chance of getting audited may increase. Be sure to check with a professional tax advisor before you submit.
Auto wallet sync
Another handy feature that comes with each subscription package is auto wallet sync. This adjusts the value of your portfolio automatically as prices go up and down. Crypto exchange wallets that work with auto wallet sync include Binance, Bitfinex, Bitstamp, Bittrex, BTC Markets, CEX.io, Coinbase, Coinbase Pro, CoinSpot, Coinsquare, Cryptopia, Gemini, HitBTC, Huobi, Kraken, Kucoin, Liqui, Poloniex and QuadrigaCX.
Subscribers can import and export CSV data, which is useful for importing historical data from other crypto trackers. In addition, CoinTracker integrates with TurboTax and TaxAct. The portfolio tracker feature is free to use.
CoinTracker does not currently support margin trading, derivatives, swaps, or futures.
CoinTracker has apps for iOS and Android. Both apps currently only have around 10 reviews, probably because they are new. Comments about the app are generally positive. People who tried the apps out praised their fast and easy to use interfaces.
CoinTracker has a robust support database that covers a variety of topics, from explaining the different accounting methods that CoinTracker supports to general information about investing in cryptocurrency.
If you can’t find an answer to your question in the support database, you can message the team directly. A note inside the chat extension says that it usually takes one business day for the team to respond.
The more trades you need to calculate, the more expensive your tax form will be.
The Hobbyist plan– the cheapest subscription available– costs $49 per year. But if you subscribe to this plan, you’ll only be able to analyze 100 transactions. The next step up is Basic Trader, which costs $149 supports up to 1,000 transactions. If that doesn’t cover you, you can go with Active Trader (4,000 transactions, $399) or Pro Trader (15,000 transactions, $999).
There’s also a Satoshi plan, which features unlimited transactions and unspecified “custom features.” Pricing information isn’t available on the site, but can be obtained through CoinTracker’s customer support team.
Some competing cryptocurrency tax generators are cheaper. The most expensive GetCryptoTax plan is $10, for example. However, CoinTracker’s value proposition is that it’s easier to use, integrates with more services and has more features.
One of the key benefits of CoinTracker is that it lets you do everything you need to do in just a few clicks. Here’s a quick look at how its interface works.
Generating tax forms
Generating a tax form is a three-step process. First, you connect your CoinTracker account to whatever crypto exchange you use. Many of the major cryptocurrency exchanges are supported, including Coinbase, Binance and others.
If you need to import data from a separate crypto wallet, that’s an option as well. The Add Wallet button lets you enter your wallet address and specify what kind of cryptocurrency it holds. Currently, CoinTracker supports four types of wallets: bitcoin, ethereum (including all ethereum-based tokens) litecoin and dogecoin. Once you enter in the wallet’s information, CoinTracker will sync its data automatically.
Step two of the tax form generation process gives you a final look at all your transactions. If there are additional transactions that you’d like to include, you can add them manually or import a CSV file via the Import Transactions button. You can also export a CSV file by clicking the Download CSV button.
After you’ve added all your data, you can generate your tax forms. Before you generate the form, you can adjust the accounting method and specify whether or not you’ve received crypto income from airdrops, mining rewards, forks or payments.
CoinTracker lets you export a CSV of your portfolio data for free. The other options under Tax Reports (Capital Gains CSV, TurboTax File, TaxAct File and IRS Form 8949) become available after you select a subscription plan.
Tracking your portfolio’s performance
The Performance tab on the top of the screen brings up a simple portfolio tracker. It gives you a breakdown of how well your portfolio has performed over time. This view is helpful because it collects data from all your cryptocurrency wallets and exchanges and removes the need to log into each of them separately when you want to find out how they’re doing.
CoinTracker’s tax form generator is pricey compared to competing services, many of which are cheap or even free. On the other hand, few trackers offer the extensive tax calculation features that CoinTracker has. The fact that CoinTracker integrates with the most popular tax accounting software programs and all the major crypto exchanges is another major plus. If you’re a frequent trader, it may be worth it to buy a subscription plan. Otherwise, cheaper and simpler trackers will likely suffice.