We have developed a thorough list of the best highly rated tax software programs accessible in 2023 to safeguard your bitcoin investments from tax-related issues. These advanced tools are intended to make tracing all cryptocurrency transactions easier, including mining through trading.
They can produce detailed reports that can be instantly submitted to the accountant or the IRS.
Our comprehensive guide offers a thorough review of each tool’s advantages and disadvantages, allowing you to determine which choice will work best for your specific needs and preferences whenever it comes time to file the cryptocurrency tax report.
You can verify that all of the best crypto trading bot is fully recorded and accounted for with the help of these sophisticated tools, saving you money, stress, or possibly costly tax fines.
The Best Tool for Managing Cryptocurrency Transactions
Koinly
Koinly is among the most popular crypto tax software options. It is unrivaled in terms of providing speedy calculations—you can complete the crypto tax report in much less than 20 minutes.
Koinly can integrate with many swaps and wallets, removing the possibility of any lost transaction history from being monitored on their system. You can trace all supplied data and balance every fee on the exchanges thanks to its automated data importation.
Besides the ease of calculation and generating reports, Koinly also provides additional transaction filtering and sorting. You can use these tools to determine which actions resulted in specific gains.
Pros
- User-friendly interface showing your real-time profit and loss, total growth, ROI, and more
- Comprehensive tax reports
- Double-entry ledger system for better transaction tracking
- Suitable for international tax calculations and filing
- Connects with 353 crypto exchanges, 74 wallets, and 14 blockchain addresses
Cons
- Tax report is not included in the free plan
- Email support is only for Trader plan subscribers
CoinLedger
CoinLedger (formerly CryptoTrader.Tax) is another solid cryptocurrency software simplifies tax report generation. Around 300,000 clients use the tool since it allows for limitless swaps and gives real-time loss and profit information.
CoinLedger supports the import of tax data from many cryptocurrency platforms and offers a printable tax form that can be forwarded to other tax programs or your accountant. The platform is simple to use, making it ideal for people who aren’t tech-savvy.
Pros
- Effortless exporting of transaction data into different platforms such as TurboTax, TaxAct, and others
- Create short and long-term sales reports, crypto income, gain, loss, etc.
- Includes tax report (IRS Form 8949)
- Integrates well with most cryptocurrency exchanges
- Calculates Ethereum blockchain and NFT transactions
- Customer service is reliable 24/7 via chat or email
Cons
- Does not accept cryptocurrency as payment
3Commas
3Commas.io was developed in 2017 by Yuriy Sorokin, Mikhail Goryunov, and Egor Razumovsky as a non-custodial platform for cryptocurrency trading.
The company, headquartered in Tallinn, Estonia, has grown to become a market leader in its industry, with over 220,000 monthly active users globally.
3Commas’ founders created the platform to solve the problem of exchanging bitcoins across many digital platforms. Users may manage their transactions and portfolios with 3Commas across 18 supported platforms and more than 2,000 crypto exchange pairs.
Pros
- 3Commas supports more than 18 major cryptocurrency exchanges, which can give traders access to various markets and trading pairs
- Compared to other trading platforms, 3Commas is relatively affordable. Additionally, annual subscriptions offer additional 50% savings
- 3Commas provides a wide range of features for both manual and automated trading, including portfolio tracking, social trading, and backtesting
- It is accessible globally, making it convenient for traders in different regions to use the platform
- The platform has an intuitive user interface across all platforms, including iOS and Android mobile devices
- Traders can get started with 3Commas with minimal KYC information
- 3Commas offers a trading academy for non-experts and beginners to improve their trading skills
- It has a paper trading account that allows traders to backtest their trading strategies
Cons
- 3Commas may not be cost-effective for traders who only make small trades or have limited capital
- Beginners and casual traders may not take full advantage of all the available features, which could make the platform overwhelming or complicated to use
Conclusion
To make the procedure easier and reduce errors, we’ve compiled a list of some of the most popular crypto tax software programs available right now. With so many viable options, it may be difficult to choose the best one.
We want to make it easy for you to evaluate and assess available options. Bear in mind that every software program has benefits and drawbacks. Some supply full forms, while others offer tax-loss harvesting.
Also, price discrepancies may impact your decision. Yet, no matter which program you choose, as much as it is dependable, you can be confident that your tax paperwork and filing will be accurate.
