The right coin tracker for your needs
Whether you are stacking Sats by adding to your portfolio regularly by means of a savings plan or whether you seek the thrill of the markets as a trader, at some point you and the tax department will want to know what the little nest egg you are growing is worth. To achieve this you need at least a coin tracker or even better a full coin tracking and tax calculation application. The levels of crypto tracking are plentiful starting from high-level cryptocurrency price tracking right down to in-depth portfolio profit calculation and tax reporting.
Price tracker for bitcoin and other cryptos
To see the current price of bitcoin or other coins denominated in the base currency you want to compare it to you could go to Coinmarketcap. Coinmarketcap calculates the current price based on a number of current listings. Coingecko is a sound alternative as it often includes cryptos that are not listed on Coinmarketcap.
Alternatively, you could search for bitcoin or any other major cryptocurrency on google.
The advantage of price tracking is that you get a quick indication of where the market is currently at. However, if you want to analyze your portfolio, are interested in historical prices, or hold a variety of crypto assets you will quickly discover the advantages of a crypto portfolio tracker as this shows historical data across all your coins.
Crypto calculator – DIY
We get better at what we measure, right? Most of us usually start with creating our own cryptocurrency profit calculator.
In the simplest form, you could get the historical price data from Coinmarketcap or Coingecko and enter your sales and purchases in a spreadsheet. You can even go further and use google sheets to automatically feed price data into your spreadsheet and get an updateable coin tracker and profit calculator. There are some examples of the google sheets provided by the community that you can adapt to your needs in use on your own.
However, using a dedicated crypto portfolio tracking app will save you a lot of time.
Crypto portfolio tracker
When your crypto portfolio grows beyond a couple of coins at a few exchanges to many coins at many central and decentral exchanges, things become a lot of fun – and quite a bit more complicated. That’s when portfolio tracking software can be an amazingly useful tool that will save you time and money.
A good cryptocurrency portfolio application has a simple and clear design, covers the coins you hold in your coin portfolio, allows you to import data from your exchanges and wallets in real-time, guarantees data integrity, and provides usability beyond historical price data and across exchanges.
However, nowadays you want your crypto portfolio tracker to do more for you like also calculate the profits from your cryptos. Here it gets complicated, as there are different ways of calculating profits. Also if you want to use it for tax purposes, you need to calculate profits according to the legal requirements of your country.
For example, Blockpit provides both crypto portfolio tracking and tax calculation according to the tax law of each supported country (currently these are the US, Germany, Austria, Switzerland, Spain, and France).
When you choose a cryptocurrency portfolio tracker it pays to check that it fulfills your current requirements and your future needs in case you increase your crypto trading activity.
In summary, the most important functionalities to consider when you chose a portfolio tracker are ease of use, functional design, real-time (API) transaction import, automated data quality check, and accurate tax profit calculation based on your tax residence.
Best cryptocurrency portfolio apps
We reviewed a number of cryptocurrency portfolio apps for you.
Based on your tax residence and depending on your trading habits the following cryptocurrency tax software could be useful to you:
Cointracking was the first popular portfolio tracking solution. It offers a variety of import options and parameters to calculate the profits. It is less suitable for beginners and those who want to do taxes, as its tax reporting was not made to be compliant with the tax laws of any particular country.
Cointracker offers free portfolio tracking and an adjustable tax year. This can be useful if the tax year in your country of tax residence varies from the calendar year.
Accointing offers free portfolio tracking as well as a free crypto tax calculator for a limited number of transactions. This could be suitable if you want to try things out. However, you should be aware that the Accounting tax framework is not audited and you will require some prior tax knowledge to use it correctly.
Koinly allows you to choose the start of the tax year manually and to set many other tax preferences. This allows for increased flexibility however should only be used in connection with expert tax knowledge.
TaxBit is suitable for US taxpayers. With some prior tax knowledge, the software can be used to calculate taxes for US residents. However, it does not offer free portfolio tracking and its tax software is currently not suitable for markets outside the United States.
All the above cryptocurrency portfolio apps provide API imports from major exchanges. Transactions from less frequently used exchanges have to be imported manually. Since there is no automated data quality check you have to be vigilant of correct transaction classification.
Crypto tax software
The most important thing about any tax software is that the resulting tax report needs to be compliant with the tax laws of your country. There are many coin tracking applications that claim to provide crypto tax calculation as well, however, you need to check if this particular calculation is according to the laws of your country. A good crypto tax application does it for you and makes sure that the produced tax reports are according to the current legislation of your country.
The Blockpit cryptotax software is your one-stop-shop for crypto portfolio tracking and crypto tax calculation specifically for your country.
Portfolio tracking is free for an unlimited amount of transactions. Via API transaction import you automatically receive the most current status of your portfolio and new API exchange import connections are added regularly. The software automatically detects numerous transaction types such as staking, lending, airdrops, bounties, fees, and futures/margin trades and applies the proper tax treatment.
A very useful feature is the separate profit calculation for each exchange or wallet you hold in your crypto portfolio.
You can test the free crypto tax calculator for up to 25 transactions.
For tax purposes, Blockpit provides country-specific tax reports in compliance with current legal requirements in the USA, Austria, Germany, France, Spain, and Switzerland. The crypto tax calculator generates all forms and documents required for filing your tax return. The accurate settings are taken from a tax framework developed by top-notch CPAs and no prior tax knowledge is required to accurately file the crypto investment part of your tax return.
For all other countries, a generic tax report based on accurate transaction type classification is provided for simple use for your tax advisor.
The Blockpit cryptocurrency tax software has a clear user interface and is straightforward to use. Should you get stuck there is even multilingual support to help you out.