CoinLedger Review: Fast Crypto Tax Reports (2024)

CoinLedger is a cryptocurrency tax preparation software tool.

Cryptocurrency traders often start buying and selling crypto casually. You may conduct a handful of transactions from a single exchange, but as your cryptocurrency holdings become more complex, you’ll need a more advanced tool to track your crypto portfolio and prepare your cryptocurrency tax forms.

If you’re looking for help with filing your crypto taxes, an app likeCoinLedgercan save hours with a reasonable price tag. The service integrates with all major cryptocurrency exchangesand multiple tax software companies, including TurboTax, TaxSlayer, H&R Block, and more.

The following CoinLedger review will help you decide if CoinLedger is a good option for your crypto tax prep.

Some Crypto Tax Basics

Cryptocurrency tax rules can get complicated quickly.

To the IRS, crypto tokens and NFT are treated similarly to stocks. Each token has a cost basis which is the token's value (in $USD) at the time of purchase. You realize gains or losses (called capital gains or losses) when you sell the token (or NFT).

The gain or loss realized depends on the value of the token at the time you sell. If you received cryptocurrency for mining or as a payment from someone else, the currency's value is taxed as ordinary income. Additionally, interest earned on cryptocurrency is taxed as ordinary income.

What Is CoinLedger?

Founded in 2018, CoinLedger is designed to make crypto tax calculations easy. It allows users to import transactions from hundreds of crypto exchanges, wallets, and DeFi services (that’s short for decentralized finance). Then it calculates your income and capital gains for IRS tax reporting.

The company generates Form 8949 for cryptocurrency and offers custom integrations with tax filing platforms like TaxAct and TurboTax.

For the 2024 tax season, we named CoinLedger the best software for everyday traders in our annual rankings of the best crypto tax apps. Be sure to check out this year’s list of the Best Crypto and NFT Tax Software to compare.

CoinLedger - Is It Really Free?

CoinLedger has a free start option for all of its pricing tiers. You can track your cryptocurrency portfolio and view tax report previews as a free user. However, you must pay to download or integrate the reports with tax filing software.

What’s New In 2024?

For 2024, CoinLedger is still an easy-to-use software with API integrations with many crypto exchanges. This year, CoinLedger has added dozens of new integrations with new exchanges, wallets, and DeFi apps.

The number of supported currencies has also increased to more than 20,000, which is the biggest list we’ve come across in this year’s tax software reviews.

Does CoinLedger Make Tax Filing Easy In 2024?

CoinLedger dramatically simplifies tax filing for active crypto traders. The software supports API integrations from hundreds of exchanges and has clear workarounds for things like mining income, interest income, airdrops, and gifts.

If you have more than a dozen sell-side transactions this year, it makes sense to consider CoinLedger for tax filing. It is an added cost on top of typical tax software, but it will save many headaches, especially if you use multiple exchanges.

CoinLedger Features

No matter which crypto exchange you use, you should be able to connect it and import your trading data.

Once CoinLedger imports your data, it classifies transactions as either capital gains or ordinary income transactions. Then it establishes the fair market value for each relevant transaction, meaning it converts the value of the transaction from cryptocurrency to US Dollars.

Finally, it transfers the income to forms you can report on your tax software. Here's what else the software offers:

API Integrations

CoinLedger often allows users to connect to APIs using an API key. Where supported, API integrations make it easy to download your account history with minimal effort.

API keys are like a secret password just for your crypto account. Once linked, CoinLedger can stay updated with your latest transactions.

Clear Documentation

CoinLedger has dozens of articles that explain exactly how to connect to the exchange API or import files from the exchanges. The site outlines “gotchas,” so users won’t make common errors.

Integrates With Tax Filing Software

CoinLedger allows users to integrate directly with several tax filing platforms, including TurboTax and TaxAct. No need to fill out the information twice. Simply connect the tax software to CoinLedger to save time.

Limited Free Trial

All users can try out CoinLedger for free. You only pay if you want to download tax reports. However, we've found that you quickly move to a high tier if you buy, sell, trade, and use crypto frequently, something that's surprisingly easy to do.

For example, if you’re staking three currencies with daily staking rewards payouts, you’re already at about 1,000 transactions per year from that alone. Adding active trading accounts, it’s easy to see how you could wind up with many thousands of transactions per year.

CoinLedger Drawbacks

CoinLedger has a few drawbacks for crypto traders seeking easy tax solutions.

No Free Tier for Taxes

CoinLedger offers free trials, but all users must pay to receive downloadable tax reports. ZenLedger and CoinTracker offer free reports for filers with fewer than 25 transactions.

Even if you’re not using the tax features, you may find the free crypto portfolio tracking useful. If you use CoinLedger for tracking your crypto wallets and exchange accounts, generating tax reports requires just a few clicks and a payment.

Some Exchanges Have Messy Integrations

CoinLedger provides clear guidance on how users should connect to APIs or import files from the various supported exchanges. However, some require workarounds, such as downloading a .CSV file with your transaction records and then uploading to CoinLedger.

How Much Does CoinLedger Cost?

CoinLedger prices are based on the number of trades you place. A trade includes buying, selling, or making coin-to-coin transfers. These fees are paid annually, once per tax season.

How Does CoinLedger Compare?

CoinLedger is the original crypto tax software and a leader in user experience. Most traders can dramatically simplify their tax filing thanks to CoinLedger.

CoinLedger is also priced competitively. TaxBit supports more exchanges than CoinLedger, but both support the major exchanges. Although TaxBit’s software is now free to individual investors, the company cut out many features and supported exchanges, so CoinLedger may be the better option for those needing more support. ZenLedger and CoinTracker both have a free tier with a 25 trade limit but are otherwise similar.

CoinLedger users who only use more popular exchanges like Coinbase, Binance, or Robinhood may not need a standalone service like CoinLedger. TurboTax can already integrate directly with some exchanges to calculate your taxes.

Is It Safe And Secure?

CoinLedger is built with security in mind. The company never stores personal information in its databases and processes all payments through a third party, Stripe. The read-only APIs that CoinLedger uses do not give it access to private keys or other personal information. Additionally, the software encrypts all information in transit and at rest.

However, the company suffered a data breach in 2020 in which over 1,000 email addresses were stolen. The hacker did not steal detailed account information beyond that.

Crypto traders are used to dealing with a certain level of security risk. It's never perfectly safe to use a third-party tool. However, CoinLedger has all the systems and measures in place to reduce the likelihood that your information will be stolen or end up in the wrong hands.

How Do I Contact CoinLedger?

For 2024, CoinLedger offers live chat support on all of its tiers. You can also email them at [email protected]. The company does not publish a customer service phone number.

CoinLedger has received overwhelmingly positive reviews on Trustpilot. Its average rating is currently 4.8/5 from around 855 customer reviews. Most positive reviews share an easy experience putting crypto taxes together, while complaints tell horror stories of being charged more than expected and poor customer service. With far more good reviews, those who had negative experiences were in the minority.

Why You Should Trust Us?

At The College Investor, we’ve been working with cryptocurrency since the early days. We have extensive experience with cryptocurrencies and have tested many cryptocurrency tax systems for our personal tax returns. We work hard to bring you unbiased reviews to help you understand the pros and cons of every product before clicking the buy button.

Is CoinLedger Worth It?

CoinLedger is the leading crypto tax software for a reason. It's easy to use, robust and priced competitively. Filers who want explicit support for margin trading may want to choose another platform, but CoinLedger offers a simple tax solution for crypto traders in 2024.

CoinLedger FAQs

Let's answer a few of the most common questions people ask about CoinLedger:

Can CoinLedger help me file my crypto investments?

CoinLedger can help crypto traders prepare their crypto taxes quickly and easily. However, unlike tax software companies like TurboTax or H&R Block, CoinLedger cannot file taxes on your behalf with the IRS.

Can CoinLedger steal my crypto?

No, CoinLedger uses a read-only API to collect information about your crypto exchanges. It does not gain access to your private keys. For an added layer of security, you can transfer your keys to a hardware wallet before filing taxes.

Do I need to report my crypto wallet transfer data to the IRS?

Transferring cryptocurrencies from one wallet to another does not trigger a taxable event. However, if you made trades, earned interest or staking rewards, or incurred any other type of taxable event inside your wallet, these events will need to be reported.

Can international traders use CoinLedger?

Yes, the company says that it can generate crypto gains, losses, and income reports in any currency.