Cryptocurrency is the FUTURE of finance.
However, if I talk about cryptocurrency today, do you understand how it all works?
If you’ve no idea, read one of my previous posts where I’ve explained How Do Crypto Initial Coin Offerings Work.
Then once you’ve invested in a particular cryptocurrency, it’s essential to file required taxes as IRS considers cryptocurrency holdings any other assets you own, like Gold or Stocks.
So, if you’re looking for a solution for filing cryptocurrency taxes, it can be hard to know which is the best.
That’s why I’ve put together this TaxBit vs Coin Tracker comparison.
Here I’ll show you how each platform works, what prices they charge, and more so that you make an informed decision when choosing your crypto tax solution.
Let’s get started –
Table Of Contents
TaxBit and CoinTracker are both popular options for crypto tax solutions.
TaxBit is a cryptocurrency tax solution that is more user-friendly. It’s easy to use and can be used by traders of all skill levels, even those who have never filed taxes.
CoinTracker is a more advanced solution that is more suited for advanced users who have been trading cryptocurrencies for some time now, have multiple portfolios in different assets (such as stocks, bonds, and cryptocurrencies), or have many assets outside the crypto world (such as mutual funds).
The main difference between TaxBit and Coin Tracker lies in their complexity: TaxBit was designed to be simple while offering valuable features like automatic importation of transactions from exchanges.
On the other hand, CoinTracker offers an extremely powerful API integration toolkit that allows people with large portfolios or complex investments to set up automated reports based on their trades over time.
This makes it a better choice if you want something beyond your basic tax filing requirements.
TaxBit vs CoinTracker: Dashboard
TaxBit is a blockchain-based tax solution and cryptocurrency portfolio tracker. The platform allows users to create tax reports, import historical data from exchanges and other sources, track crypto transactions (including crypto-to-crypto trades), and more.
Coin Tracker offers various features, including –
- Tracking multiple accounts across multiple exchanges
- Generating live charts of your portfolio value over time.
- Exporting trading history as an Excel worksheet or PDF.
- Customizing data visualization options to suit your needs better, and
- Creating individualized reports for each year using the same data you can input manually into the app itself (no need to export it first).
The TaxBit dashboard has different sections: Your Portfolio, Tax Reports & Filings, Transaction Listing, Exchange Data Import & Export Options. In each section, a wealth of information can help you understand how much profit/loss you’ve made since any given point.
TaxBit vs CoinTracker: Cost of Use
TaxBit and CoinTracker, both offer a free plan and multiple premium plans. Let’s compare their pricing and determine which provides the best value for the bucks.
CoinTracker’s free account comes with a limited set of features you can try right after signing up for an account. You can start using your Coinbase or Gmail account to create an account.
Once the account is created, log in to your account using the CoinTracker website or app and connect your exchanges. They don’t ask for any sensitive information, so there’s no risk of them getting hacked or compromised.
Then once you feel like you need access to Cointracker’s premium features, you can always upgrade to its premium plans starting from $53.99/year.
TaxBit, on the other hand, costs $50 per month, but compared to CoinTracker’s free account, they offer a 14-day free trial, so it’s easy enough for you to try out before deciding whether or not it’s worth paying for their services regularly (more on that later).
Similar to Cointracker, TaxBit also has multiple plans available. So, choose the plan based on your preference.
TaxBit vs CoinTracker: Reporting Accuracy
Both TaxBit and CoinTracker use the same method to calculate your capital gains.
However, CoinTracker turns out to provide a higher accuracy rate than TaxBit.
If you want to be sure that your profits are calculated accurately, you should go with CoinTracker.
TaxBit vs CoinTracker: Customer Service
CoinTracker is available 24/7 via phone and email. You can also submit your questions through the CoinTracker app, which will route your inquiry to one of their support representatives.
CoinTracker’s customer service is available in English and Spanish, so you won’t need to worry about creating language barriers if you are not fluent.
They also have a help center that includes articles on topics such as how to add cryptocurrency wallets, export tax reports, or file taxes with CoinTracker.
If you need assistance with something specific, don’t hesitate to reach out! Their support team is amicable and helpful.
TaxBit vs CoinTracker: Supported Platforms
TaxBit and CoinTracker both support significant exchanges. In addition, TaxBit supports all major exchanges, including Coinbase, Binance, Kraken, Gemini, and Bitstamp.
The only exception is Poloniex at the moment (Taxbit’s team has said they will add support for it soon).
CoinTracker also supports all major exchanges. In addition, TaxBit and CoinTracker let you import trades from your exchange accounts via API key or CSV file uploads.
Both services can be accessed on mobile devices; both offer iOS apps that allow users to track their crypto portfolios on the go. However, only CoinTracker provides an Android app (for tracking cryptocurrency holdings on Android smartphones).
TaxBit vs CoinTracker: Training Support
TaxBit offers a free course covering the basics of cryptocurrency tax preparation, while CoinTracker currently offers its free training course.
TaxBit offers paid training courses that go into more detail about preparing your taxes with cryptocurrencies, which may be helpful for users who need more in-depth guidance.
CoinTracker provides a completely free-to-access Cryptocurrency & Bitcoin Tax Guide.
When it comes to digital currency tax solutions, there are tons of options for you in the cryptocurrency market.
However, as far as this post is concerned, here I’ve compared two of the most popular platforms – The first is TaxBit, and the second is CoinTracker.
They’re both great choices that have their own sets of pros and cons. The most important thing you can do when deciding which one to use is to evaluate your personal needs based on what I’ve outlined in this article: cost, accuracy, and customer service!
Once you have done this research, purchase a subscription based on your requirement.
If this post guided you in making the right choice, don’t forget to share it with your friends.
That’s all for now.
Meanwhile, are you planning to invest in cryptocurrency like Bitcoin?