It is no secret that the capitalization of the cryptocurrency market has grown faster than the broader cryptic industry. This means that the options for tools to keep, track and manage your cryptocurrency are still quite small.
CoinTracker is one of the recently launched startups that try to help. Part of YC's Winter & # 39; 18 class, is a platform to track your crypts through all exchanges, portfolios and even currencies. Today, most crypto-enthusiasts try to do it using complicated and inflated Google spreadsheets. But this only works if you are meticulous in registering every transfer and trade and have been since you made your first encrypted purchase.
CoinTracker attempts to automate this process. You start connecting to all the exchanges you use (currently supporting 13), but you can also add the public address to any portfolio that contains Bitcoin, Ethereum, Litecoin and Dogecoin and will automatically read the balance and update it in your wallet. If you have other coins (they support and pull prices for 2000+) you must enter them manually, entering how much you paid for them and on what date.
Having hands in all these transaction data allows CoinTracker to essentially detect when transferring encryption between different exchanges or portfolios, which means that it can track the cost basis and capital gains of the entire portfolio, regardless of where the encryption is located.
Tracking the cost and capital gains base has enabled CoinTracker to create another sought-after feature, which is the ability to optimize tax deposits by calculating capital gains reports using FIFO, LIFO, or HIFO accounting.
This tax function is launched today, starting at $ 29.99 for a tax report of less than 100 transactions and pre-filled IRS form 8949, up to $ 999.99 for unlimited transactions, including prior years. The existing features, which synchronize with the exchange portfolios, showing your performance over time and collecting the history of your transactions in a single list will remain free by anyone.
The service is not absolutely perfect, especially for those of us who have been involved in the crypto since before 2017 and have transactions and coins scattered in dozens of exchanges (some of which are now closed). There are also some key features depending on the exchanges that connect – for example, Gemini does not provide CoinTracker with withdrawals or deposits, which means that the cost history is a bit out of place.
But it's a good start, and it will probably be almost perfect if you're an average cryptic investor who was involved in 2017 and has only a few different currencies in some major trades.
The site also has a price list of the first 100 coins (basically an alternative to coinmarketcap.com) and is working on an investment offer in which users can invest in a basket of the best cryptocurrencies.
The CoinTracker tax function is launched today and you can check it out here.
Disclosure: Writer has a small amount of various cryptocurrencies.