CoinLedger Review 2025 – Pros & Cons

CoinLedger is a popular crypto tax software provider that allows users to generate annual returns in minutes. My CoinLedger review found that transaction data is securely pulled from exchanges and wallets.

This turns a mundane process into a fully automated tax solution. Read on to learn more about CoinLedger, including how it works and what countries it supports. I also cover pricing, compatible exchanges/wallets, and additional features.

CoinLedger Pros & Cons

My CoinLedger review discovered the following pros and cons:

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What Is CoinLedger?

Founded in 2018, CoinLedger offers automated tax software for crypto traders. It makes tax reporting simple and fast, with CoinLedger integrating with most exchanges and wallets. Through a secure API, crypto trading transactions are automatically imported, meaning tax reports are generated in minutes.

This saves an unprecedented amount of time, especially for active traders. Consider that almost every transaction, from wallet movements and exchange orders to staking and swaps, must be accounted for. Not only the specific transaction but at the correct amount. This ensures the capital gains and income tax are reported accurately.

Some nationalities benefit from fully-fledged tax returns with completed forms. This includes the IRS Form 8949 for US clients. The UK, Canada, Japan, New Zealand, South Africa, Australia, and multiple countries from the European Union are also supported. Users from other countries can still generate tax summaries, but some manual adjustment is needed.

CoinLedger also offers additional features that help users reduce their taxes. This includes tax-loss harvesting crypto and optimized accounting methods like FIFO or LIFO. CoinLedger charges a one-off fee for each tax year, from $49 to $499, depending on how many transactions must be analyzed. The free plan offers unlimited transactions but comes with reduced functionality.

How Does CoinLedger Work?

In this section of my CoinLedger review, I’ll explain how the platform works in more detail. This will help you decide whether CoinLedger provides the right tax solution for your circumstances.

Wallet and Exchange Integrations

The first step is importing crypto transactions for the respective tax period. Everything is completely automated, as CoinLedger connects with most crypto exchanges. This includes Coinbase, Binance, Crypto.com, KuCoin, Kraken, and even Robinhood and Cash App. The best Web 3.0 wallets are supported, too, such as MetaMask, Exodus, and Trust Wallet.

Crucially, integrations are safe. CoinLedger never has access to the respective accounts. Exchange connections are made via a safe API link-up. This enables CoinLedger to view transaction details in “watch-only” mode. Some platforms don’t support APIs, so the solution is a CSV file upload. Crypto wallet connections simply require the wallet address.

In addition, CoinLedger also supports DeFi platforms, allowing users to calculate income taxes on staking, airdrops, yield farming, and decentralized token swaps. CoinLedger is also a good solution for margin traders, including those trading complex derivatives like perpetual futures and options.

Transaction Analysis

Once the exchange and wallet integrations have been made, CoinLedger gets to work. It analyzes every transaction, including the time, date, cost basis, sale price, and everything in between. The results are shown a few minutes later.

Depending on what positions were entered, CoinLedger should yield the following data:

• Capital Gains: All trades are calculated for capital gains, meaning profits after costs. For example, suppose the total value of all sales proceeds was $5,000. The total investment amount was $3,000. The capital gains are $2,000, which must be reported.
• Income Tax: DeFi products are subject to income tax in most countries. For instance, it automatically assigns a cost basis to staking rewards. This is a lifesaver, considering some staking platforms pay out daily.

Generated Report

Users from some countries get fully-fledged tax reports, meaning they’re automatically completed by CoinLedger. The generated report can then be filed with the respective tax authorities, such as the IRS or HMRC.

Supported countries are listed below:

• Australia
• Austria
• Canada
• Denmark
• France
• Germany
• India
• Ireland
• Japan
• New Zealand
• South Africa
• Spain
• Sweden
• Switzerland
• United Kingdom
• United States

Not from one of the above countries? The good news is that CoinLedger still generates the most important outputs, such as transaction history, capital gains, and income. However, you’d need to manually fill out a tax form with your local authority. In addition, you won’t get country-specific guidance on how much is owed.

Even so, CoinLedger is still worth considering. Otherwise, you’d need to manually review each transaction, including the cost basis and sale price for each position.

Key Features of CoinLedger

I’ve covered how CoinLedger works and what countries it supports. Now, let’s explore its key features.

Tax-Loss Harvesting

Tax-loss harvesting is a popular tax reduction strategy used by seasoned investors. Not just for cryptocurrencies but for traditional securities too, including stocks. In a nutshell, investors purposefully sell unrealized losses, which can be used to offset capital gains. CoinLedger automates the process, allowing users to find tax-loss harvesting opportunities based on historical trades.

Here’s a simple example of how it works:

• Let’s say you currently owe $4,000 in crypto capital gains.
• You have an existing 0.1 BTC position, which originally cost $10,000.
• That 0.1 BTC is now worth $6,000.
• You sell it, locking in a $4,000 loss.
• This offsets the $4,000 capital gains from earlier, meaning no taxes are due.

While tax-loss harvesting can reduce tax obligations, don’t forget about the “wash sale” rule. This prohibits investors from repurchasing the sold assets for 30 days. Otherwise, you can’t claim the loss. Wash sale rules apply to cryptocurrencies in Canada, the UK, and other countries. Check your local tax laws before proceeding.

Crypto Portfolio Tracker

Another top feature is CoinLedger’s portfolio tracker. Unlike with conventional trackers, users aren’t required to manually build their portfolios. Nor do they need to state the cost basis for each trader. The entire portfolio is automatically imported from exchanges and wallets.

Similar to tax reporting, this is achieved via an API, CSV files, or wallet addresses. Therefore, the cost basis, profit and loss, and even tax obligations can be viewed at the click of a button. Not only is this a convenient way to monitor investments but also assess potential tax liabilities.

DeFi Products

I found that CoinLedger is the ideal crypto tax software for DeFi investors. Ordinarily, DeFi products are highly cumbersome to track. This is especially true for tax reporting purposes. For a start, DeFi earnings, such as staking or lending, are classed as income by most tax authorities. This means DeFi income is due in the same tax year the rewards are earned – even if they’re not sold.

Things become even more challenging when receiving regular staking payouts. For instance, the best crypto staking platforms offer weekly (and sometimes daily) distributions. Each payout has a different cost basis, considering that crypto prices change every second. Not only does each cost basis need to be reported, but it determines how much income tax is due.

For example:

• Suppose you receive 100 ADA in staking rewards every week.
• ADA is priced at $1 in week one. You must add $100 to the annual income.
• ADA is worth $1.50 in week two. That’s another $150.

Now consider this process when staking multiple cryptocurrencies across different blockchain ecosystems. Fortunately, my CoinLedger review found that it takes minutes to obtain the required data. Everything is completely automated, saving DeFi investors significant time and reducing hassle.

Audit Trail Report

Error Detection No automated tax software is 100% error-free. That said, CoinLedger detects potential issues and warns users accordingly. For instance, you’d receive a notification if a missing transaction has been detected.

It can also detect duplicated entries, incorrect cost basis, and unmatched transfers. The latter is particularly important, as transfers made between personal wallets shouldn’t be taxed (e.g,. transferring crypto to an online exchange).

Integration With Other Tax Software

CoinLedger is also a good choice when using traditional tax software. It integrates transactions, capital gains, and income into third-party platforms, such as TaxACT, TaxSlayer, TurboTax, and H&R Block.

This feature is ideal for complex tax returns, including those with multiple investment products and income sources. It’s also a solid option for businesses with exposure to digital assets.

CoinLedger Crypto Tax Calculator

Crypto investors will also like the CoinLedger tax calculator. Users can enter the investment amount, buy and sell prices, and length of ownership (e.g., under or over a year).

US clients can also provide their state and filing status (e.g., single) for a more comprehensive crypto tax rate.

Is CoinLedger Crypto Tax Software Easy to Use?

As confirmed by other CoinLedger reviews, I found the platform to be perfectly suitable for beginners, especially when based in supported countries. The initial step is to connect CoinLedger with external accounts, such as exchanges and wallets. The easiest option here is an API connection. You will, however, need to generate an API key from each provider.

This is relatively simple, and CoinLedger provides full guidance. Then, it’s just a case of pasting the API into the CoinLedger account. The process is repeated for each provider. Therefore, CoinLedger takes care of the calculations. A few minutes later, you will receive the transaction summary, capital gains, and income.

The good news is that if you’re from a supported country, the required tax form is automatically completed. You can then proceed to submit it online or by mail. However, non-supported nationalities must complete their tax forms manually. The issue here is that mistakes can be made.

How to Use CoinLedger

In this section of my CoinLedger review, I’ll explain how to get started. Read on to get your crypto taxes in order.

Step 1: Open a CoinLedger Account

Visit the CoinLedger website to register an account.

Type in an email address, choose a password, and confirm.

Step 2: Get API Keys From Exchanges

Assuming you’ve traded on centralized exchanges like Binance or Coinbase, the next step is to obtain API keys for each. The API is unique to your exchange account. It’s typically found in the settings area, but CoinLedger provides guidance, nonetheless. Just click the exchange’s name for the required steps.

Then paste the API key when prompted. Importantly, CoinLedger can’t access any of the exchange accounts. However, you need to specify permissions before requesting the API key, ensuring it only allows read-only mode. CoinLedger also assists with this step.

Step 3: Get Wallet Addresses for Wallets and DeFi Transactions

If you’re using self-custody wallets and/or DeFi platforms, CoinLedger simply needs the wallet address. You’ll need this for each blockchain you’ve integrated with.

For example, if you’ve used Trust Wallet to store Ethereum and Solana meme coins, you’d need to provide the wallet address for both ecosystems. This is simple – just click the “Receive” button to reveal the respective address.

Step 4: Generate Transactional Data

You can generate the transactional data once all exchange, wallet, and API integrations have been made. The results will appear a few minutes later.

Viewing the transaction summary, capital gains, and income is free. No limits are in place. However, if you’re looking to download a completed tax report, such as an IRS Form 8949, payment is required.

Fees depend on how many transactions you’ve completed. I discuss pricing in the next section of this CoinLedger review.

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CoinLedger Pricing & Fees

No CoinLedger costs are charged to view transactional data, capital gains, or income for the respective tax period. Downloading a fully-fledged tax report for your country of residence comes with the following prices:

• $49: Up to 100 transactions
• $99: Up to 1,000 transactions
• $199: Up to 3,000 transactions
• $299: Up to 10,000 transactions
• $499: Unlimited transactions

All paid CoinLedger plans come with additional functionality, such as tax-loss harvesting, audit trail reports, and integration with traditional tax software like TurboTax.

Who is CoinLedger Best for?

CoinLedger is best suited for active crypto traders. This includes anyone who buys and sells cryptocurrencies regularly, whether that’s on centralized or decentralized exchanges. Obtaining the required data for tax reporting, such as the cost basis, sale price, and dates, can be extremely time-consuming.

Time demands increase exponentially as more transactions are placed. CoinLedger automates the process, with most reports taking minutes to generate. CoinLedger is even more beneficial for those accessing complex crypto products, such as perpetual futures, staking, and yield farming.

In addition, CoinLedger is ideal for people who don’t feel comfortable filling out tax forms. This is because it automatically completes forms like the IRS Form 8949. However, this feature is only available in select countries. Another use case is passive investors with dollar-cost averaging strategies.

For example, suppose you automatically buy $500 worth of Bitcoin every week. CoinLedger not only assesses the average cost basis but also the unrealized tax obligation. CoinLedger can also be used as a standalone portfolio tracker. Once integrations have been made with exchanges and wallets, you get real-time insights into your crypto investments.

Is CoinLedger the Best Crypto Tax Software?

In summary, my CoinLedger review has covered everything you need to know. It’s one of the best crypto tax solutions in the market, with fully automated reports for capital gains and income.

No experience is needed – just obtain your exchange APIs and wallet addresses (a simple task). Prices are competitive, too, with CoinLedger charging fees based on the number of transactions generated.

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FAQs

References

• About Form 8949, Sales and other Dispositions of Capital Assets (IRS)
• Avoid These 3 Common Crypto Mistakes When Filing Your Taxes, Says CPA: ‘I see These all the Time’ (CNBC)
• Tax-Loss Harvesting Strategies (Goldman Sachs Asset Management)
• What is the Wash Sale Rule? (JP Morgan Wealth Management)