CoinTracker Review

With over 100,000 users, CoinTracker is a platform that is quickly gaining traction. This is one of the platforms that is helping legitimize cryptocurrency as a financial asset. With the IRS cracking down on cryptocurrency gains and numerous institutions of other countries doing the same, CoinTracker is a platform that crypto enthusiasts definitely need.

Overview

Founded in August 2017, CoinTracker can track your entire cryptocurrency portfolio. It tells you the value of your entire holdings, in which wallets they are currently placed, and helps you organize your transactions for taxation purposes.

The great thing about CoinTracker is that you do not need to manually input your transactions. It will automatically track everything and organize it so that you are able to file your taxes in an appropriate manner.

User reviews for the platform are extremely positive, and the team behind CoinTracker seems to know what they are doing. The engineering team has worked for Google, ZERO, and Square among other big-name companies.

CoinTracker has investments from numerous notable people, including the Reddit Co-Founder Alexis Ohanian and tennis player Serena Williams.

Prior to the advent of trackers like CoinTracker, those heavily invested in cryptocurrency often used spreadsheets, which required manual inputs and were simply too complicated to maintain. However, CoinTracker provides a simple solution for people invested in multiple currencies across multiple exchanges. Lastly, traders also stand to benefit from CoinTracker as their taxes can be too complicated to handle on their own (due to the thousands of transactions that they may make during a year).

Features

CoinTracker offers numerous features that help you easily track your currencies as well as the tax that you need to pay on them. Here are the most important:

  • Automatic synchronization with over 300 wallets and exchanges. These include Coinbase, Bitfinex, Binance, and Trust Wallet.
  • Automatic detection for all your transactions. You will not need to update your portfolio whenever you make a cryptocurrency sale or purchase.
  • Performance tracking for all your investments. CoinTracker can determine the value of your investments and how they have done over time, providing you accurate data on how you can maximize the value of your portfolio. 
  • CoinTracker automatically generates IRS form 8949 and can help you reclaim capital losses and reduce your tax bill. So far, CoinTracker claims to have saved its users $600 million in tax bills through claiming capital losses.
  • Support for over 2500 cryptocurrencies, with new ones being added regularly.
  • Multiple costing methods including Adjusted Cost Base, FIFO, LIFO, and HIFO.
  • Support for margin trading, DeFi functionality, and CPA consultation (on higher tiers).

Pricing

CoinTracker has one free plan and three paid ones.

It is important to remember that the paid plans include one-time payments for a specific tax year. These payments vary based on the tax year that you selected. At the time of writing, the 2019 tax-year plans were the most expensive. However, we will be looking at pricing for the 2020 tax year.

Free

The free plan allows tracking of 25 transactions (for taxes), access to cost basis and capital gains, error reconciliation, and forum support. The amount of transactions here is obviously limited and thus, this should only be used as a test for the quality of services offered by CoinTracker.

Hobbyist

The Hobbyist plan has the same features as the Free one, but it allows you to make a tax payment as well as track up to 100 transactions. While this plan may not be adequate for someone who trades a lot of cryptocurrency, it is perfect for someone who holds a few coins as a part of a larger portfolio. The plan costs $59 for one tax year. However, there was a $6 discount at the time of writing.

Premium

The Premium plan is optimal for most hardcore cryptocurrency enthusiasts. The Premium plan ads support for Margin Trading, DeFi functionality, and offers chat support as opposed to forum. It also offers individual tax summaries for each wallet you own, and the maximum number of transactions is 1,000. The Premium plan usually costs $199 for one tax year, although there was a $20 discount at the time of writing.

Unlimited

The Unlimited plan is customized to your needs, and offers you unlimited transactions, CPA consultation, Concierge support, and numerous custom features (which you can request). There is no listed price for the Unlimited Plan. Instead, CoinTracker staff will offer you a quote based on the features that you require. This plan is perfect for organizations as well as high-level traders who perform hundreds of transactions every month.

Mobile Apps

CoinTracker offers mobile apps for both iOS and Android. The apps are generally easy to use and have interfaces that are quite intuitive. However, the apps are missing some key features such as the ability to access certain charting tools, a dark mode, and the time-period adjustment for your transaction history.

CoinTracker is meant to be used from your computer. However, the mobile apps are adequate as supporting companions that can help you keep track of your portfolio on the go.

For anything that is complicated, you should use your computer’s web browser. However, the mobile app is constantly updated, and the support team religiously responds to requests and suggestions. As such, it is quite probable that the mobile apps will offer full CoinTracker functionality sometime soon.

How to Get Started With CoinTracker

The easiest way to get started with CoinTracker is to head to their Pricing page and click on ‘Get Started’ underneath the plan you wish to purchase. For the purpose of demonstration, I am using the ‘Free’ Plan.

First, you need to create an account. You can also use your Coinbase or Google account for easy access.

After that, you can add wallets and exchanges until your portfolio is complete. 

Usually, individual exchanges are added through an API key that you can get when you access your account on the specific exchange.

Now, you can access your dashboard. Here, I am using a throwaway Binance account with a few cents of Cryptocurrency in it. Your dashboard can be used to access everything from your transactions to portfolio performance to tax information. Everything else is available in the top menu of the page.

Is CoinTracker Safe?

CoinTracker is one of the safest crypto platforms that you can use. Not only is the team well-known and backed by numerous highly reputable firms, but the platform has built-in security features.

You get the standard Two-Factor Authentication. The biggest security feature of CoinTracker is that it is not allowed to make changes to your portfolio. Instead, it can only view it and perform calculations which will be beneficial when the tax season rolls around.

Their Privacy Policy explicitly states that they do not sell any data related to cryptocurrency, and that their business model is based on providing tax services instead.

Your API keys, as well as all website traffic, is encrypted. Apart from that, they offer monetary rewards for bug hunters and undergo yearly penetration tests through Hunter2 to make sure their website data is safe.

Conclusion

Tracking and taxation services for a cryptocurrency portfolio is quintessential for people who own large amounts of crypto. With the IRS pressurizing individuals to make sure their portfolios are tax-compliant, having a service that can easily manage all your taxation needs is necessary.

CoinTracker is a great platform that is easy to use, offers integration with most exchanges/wallets across the web, and features that would cost you a lot more if you were to use a certified CPA (especially one that fully understands cryptocurrency).

Its multiple costing methods, feature-rich suite, customized pricing plans, and robust mobile apps make CoinTracker a great choice for anyone looking to track their portfolio. Overall, this is definitely a service that is worth checking out!

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