Blockpit Review

The thrill of exploring the crypto world may be undeniable – the excitement of learning or trading and the potential for asset growth. However, the fun can quickly turn into a headache when tax season rolls around. In such a case, reading this Blockpit review can help you navigate the complexities of crypto tax reporting.

What is Blockpit? It’s a crypto tax software that aims to simplify crypto tax reporting processes by automating transaction tracking, calculating gains or losses, and more. In addition, it integrates with popular exchanges like Binance and Bybit.

In this Blockpit review, let’s delve into the key features, benefits, and potential drawbacks of Blockpit, helping you decide if it's the right tool for your crypto tax needs.

Verdict at a glance: Blockpit offers a user-friendly interface, responsive support, and handy core features. However, its high cost and limited jurisdiction support may not be ideal for complex tax situations or budget-conscious traders.

What is Blockpit?

Let's start by going more in-depth with the "What is Blockpit?" question. The software is designed to help cryptocurrency users with tax reporting and portfolio tracking, ensuring compliance with tax laws and regulations. It supports smart blockchain importing for over 250,000 crypto assets.

Blockpit offers three main features:

• Crypto Tax Calculator
• Crypto Tax Optimizer
• Crypto Portfolio Tracker

Legally, any operations with cryptocurrencies must be declared, including trading and staking^[1]. Blockpit automates the process by integrating with many crypto exchanges, wallets, blockchains and decentralized apps (dApps), including popular options like Binance, Coinbase, and Ledger. Then, the tool automatically categorizes the transactions, making it easier to track your assets and calculate your tax liability.

Blockpit was co-founded by four people, all now at the company's C-level: Florian Wimmer, Gerd Karlhuber, Magnus Berchtold, and Tom Buchsteiner. The CEO, Florian Wimmer, is a former KPMG digital marketer with a tech background. During his time at KPMG, he was intrigued by the emerging world of cryptocurrency.

After experimenting with mining and investing in initial coin offerings (ICOs), he realized the need for a user-friendly tool to calculate cryptocurrency taxes. Unable to find a suitable solution, he decided to create his own.

Initially built for personal use, his friends and surroundings found the software valuable. Wimmer then decided to commercialize the project and present the idea to a broader audience through pitch events, leading to the founding of Blockpit in 2017.

At the time of writing this Blockpit review, this crypto tax software has more than 350,000 customers worldwide and has won multiple awards, including the Silver Award Edison in 2021 and the Award Best Taxtech in the same year.

Blockpit Review: PROS

In this part of my Blockpit review, I want to focus on the platform's strengths – the elements that make it a standout choice for crypto traders.

Security and Compliance

In its “Terms and Conditions” page, Blockpit mentions that the team has set itself to provide the highest data protection and security standards.

For customer registration, the platform only requires users to submit an email address, create a password, and select their country and currency to start using its features. Accounts can also be assigned to a specific person (e.g., a tax consultant) and operated on an anonymized or pseudonymized basis, maintaining user privacy.

Blockpit doesn't verify its customers' identities unless the team doubts the data's correctness or assumes that an account was created for malicious purposes.

When processing data, Blockpit prioritizes user data privacy and only shares information when legally mandated or with explicit user consent. Access to your private information is restricted to departments and employees who need it for essential business functions, legal compliance, and safeguarding the platform's interests.

It doesn’t collect sensitive data, such as your account or wallet access, credit card information, and API keys with trading and withdrawal permissions. In addition, it only stores non-individualizable information for advertising campaigns.

In terms of data security, Blockpit mentions that it has administrative, technical and physical measures in place to protect users from unauthorized access. Some examples include:

• SSL encryption of its official website;
• Encrypted systems;
• Access, entry and transmission control for the offices and systems;
• Regular review and assessment of the effectiveness of technical and organizational measures;
• Internal I.T. security guidelines and I.T. security training;
• Providing two-factor authentication (2FA).

In essence, it’s compliant with the General Data Protection Regulation (GDPR), ensuring that it handles user data according to strict privacy and security standards.

User-Friendly Interface Packed With Features

When you first sign up, you may notice that the tool has a clean and intuitive interface that’s easy to navigate – I think even users who are not tech-savvy can use it effortlessly. The functionalities are divided into:

• Dashboard;
• Transactions;
• Report;
• Tax Optimization.

Let's discuss all of these items one by one, starting with the "Dashboard".

Dashboard

Once you’ve imported data from exchanges, blockchains, or wallets, you should see a dashboard showing a chart of your portfolio value, which you can filter by period (24 hours, 7 days, and more). You can hover over the line to see the value of your portfolio at that specific point in time. There are also tables for the latest transactions and total performance.

Below the graph, locate the four tabs: Holdings, Integrations, NFTs, and Insights.

The first one displays detailed information about all of your held assets, including the percentage price change, current market value of the crypto, balance, and portfolio allocation across all integrations.

Meanwhile, the second section displays all your integrations and offers features for synchronization, editing, grouping, and other options.

You can also view a detailed asset breakdown, including the balance, allocation (in percentage), and value. If you see a “warning” sign beside the wallet or exchange name, be cautious, as it indicates a mismatched balance—differences between the balances reported by the data source and the calculated ones based on your total transactions in Blockpit.

For non-fungible token (NFT) holders, all collections are viewable under the “NFTs” tab. Each collection includes a preview picture, its name, the number of items, the blockchain it’s based on, its floor price, and the value in both fiat and crypto.

Click on a collection to view all the non-fungible tokens within it. Select an NFT to flip it around and see additional information, such as its name, links to NFT marketplaces, and a convenient share button. If you receive a scam NFT, click the three-dot button on the collection and select “Hide collection". Don’t worry; hidden items remain accessible at the bottom of the list when you scroll down.

You can also sort items by name or value and switch the NFT collection list to a gallery view by toggling the activation button in the top right corner.

The final tab, “Insights”, is a helpful feature praised in many user Blockpit reviews. This section displays key metrics on portfolio performance and tax overview, from “Best Performer” (the asset with the highest returns in the investor’s portfolio) to the non-taxable percentage of the portfolio.

That said, the information is visually represented in pie charts, bar charts, and other informative graphs, providing a clear, concise overview and helping users track their assets effectively.

Transactions

For a granular view of your transactions, click the [Transactions] menu. Here, you can find detailed information such as to and from addresses, dates, status (“Completed” or “Pending”), and labels. Labels help classify transactions and thus optimize your tax report.

Note that you can process up to 500,000 transactions per tax year (but the possible number will depend on your subscription plan).

After you connect your exchange and wallet, Blockpit automatically categorizes most transactions with labels like Trade, Transfer, Staking, Interest, and Airdrop. However, some transactions may not fit into these categories and are labeled as "Unlabeled Incoming" (Deposits) or "Unlabeled Outgoing" (Withdrawals). Click the pencil icon next to the label to manually edit labels for these transactions.

Besides editing the details, you can split or merge the transactions. Merging is possible within and across integrations.

If you can't locate a transaction, add it manually by clicking the "Transaction" button. Provide the date, label, and specific details relevant to your label. For example, for a “Trade” tag, specify the blockchain, asset name, incoming and outgoing amounts, and any applicable fees.

The calculation of your profits or losses and your dashboard performance values are based on a complete transaction history. Therefore, make sure to review and complete it regularly.

Reports

Blockpit lets you calculate and download your tax report for individual labels and tax categories, which I think is the most talked about in many user Blockpit reviews. Simply choose your tax year to see relevant details, like the authority, currency, and cost-basis tracking method. Then, click the “Calculate Report” button to generate a PDF report.

It will display realized profits and losses, serving as proof of origin for banks or tax advisors. It includes all relevant account transactions for the selected tax year, providing specific details like timestamps, amounts, assets, and fees for each transaction.

For a quick overview, check the “Tax Results” tab to see the summary of your report without having to open the PDF. Here, you can see the number of transactions on a certain label and the gains or losses. This feature is new and still available in Germany at the time of writing this Blockpit review. However, the team mentions that it will expand to other countries soon.

Another capability worth mentioning in this “Reports” section is that you can create and and download an unlimited number of tax reports per year (as long as you have purchased a subscription plan). It can be renamed or deleted, providing flexibility for future reference or archival purposes. It’s also possible to set favorites for several reports.

Tax Optimizer

The Tax Optimizer is a tax-loss harvesting tool that helps to turn your losses into tax savings. It helps you identify current gains and losses for each asset and their holding period.

Based on your tax jurisdiction, you may be able to realize gains or losses to optimize your tax liability within a given year (e.g., offsetting losses against gains). In the US, for instance, selling an asset held for over 365 days qualifies for long-term capital gains tax treatment, which differs from short-term capital gains.

However, note that this feature and the tax report functionality explained previously aren’t in Blockpit’s free plan. You have to purchase a license to unlock the features.

Helpful Customer Support and Quite Broad Jurisdiction Coverage

Many user Blockpit reviews highlight its excellent customer support, praising the team's quick response times and helpful solutions to user inquiries.

The first interaction is with the Blockpit Bot, which guides you through common issues such as getting started, managing transactions, importing data, and tax reporting. The bot provides relevant articles and FAQs to help you resolve your problem.

If you need further assistance, create a ticket to connect with a human agent. Simply fill out the contact form with your email address, topic, subject, and a detailed description of your issue. You can also attach relevant documents to support your query.

At the time of writing this Blockpit review, the platform covers 10 countries with language support, a tax optimization algorithm, and pre-filled tax forms. These countries include:

• United States
• United Kingdom
• Italy
• Spain
• France
• Germany
• Austria
• Switzerland
• Netherlands
• Belgium

While the majority of them are in Europe, Blockpit is actively expanding its coverage to include more regions.

For a broader range of countries, including Australia, India, and South Africa, Blockpit offers generic tax reporting in English. Users from these countries can still utilize Blockpit to manage their crypto taxes, although the level of support may vary compared to the fully supported countries.

A Practical Solution for Crypto Tax Agents

Besides providing value to individual users, Blockpit offers features designed for tax professionals, making it a good alternative to CoinTracking, which is often criticized for its outdated design.

Blockpit allows tax professionals to manage their team members and clients efficiently. They can add any number of employees and view or edit clients’ accounts with a single login. The client information is also securely stored in a central interface, making collaboration and data sharing seamless.

Moreover, Blockpit's growing user base can offer an opportunity for tax professionals. A broad range of cryptocurrency investors, from individual traders to businesses, can represent a potential pool of clients seeking professional tax advice.

To use this feature, tax professionals need only list their services, and the platform takes care of the technicalities, including know-your-customer (KYC) verification and payment processing. This streamlined approach allows them to focus on providing tax advice while Blockpit handles the administrative aspects of client acquisition and onboarding.

Did you know?

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Blockpit Review: CONS

Looking at the positive aspects of Blockpit, it's easy to overlook its drawbacks. To provide a balanced view, I dedicate this part of my Blockpit review to discussing the potential downsides of the platform you should consider.

Restricted Integration Scope

When it comes to integrations, Blockpit is compatible with +150 exchanges, +180 blockchains, and +70 wallets.

It seems accommodating for many users who use popular exchanges and wallets, but another portfolio tracker and tax calculator named Koinly leads the way with over 800 integrations overall. Another option, CoinTracking, also has more integrations with +300 exchanges and +200 wallets, as well as various decentralized finance (DeFi) protocols.

Notably, Blockpit has yet to have support from several growing DeFi chains, such as DogeChain and ImmutableX.

What do all these numbers mean? It means that getting all your transaction data into Koinly or CoinTracking is easier than with Blockpit, where you may need to create CSV files to import your transactions or submit those transactions manually through the platform.

While Blockpit offers a user-friendly interface and strong core features, its limited integration options may be a drawback for some users, particularly those who invest in a diverse range of cryptocurrencies and DeFi protocols.

Limited Free Plan

Blockpit's tax report and optimization capabilities are locked behind a paywall – only available to those with a paid plan. This limitation means that you won't be able to preview your tax calculations and tax report formats to ensure you're happy with the result. You also cannot access the tax optimization tool to refine your taxes before deciding to buy a paid plan.

What you can do with this plan is access portfolio tracking features and add integrations for your portfolio.

Meanwhile, the aforementioned competitors of Blockpit, Koinly and CoinTracking, offer free tax reports or at least a rich tax summary.

Although you can’t download the tax report on Koinly and CoinTracking, you can still preview your tax summary, including gains, losses, income, and more. Such a feature enables users to make informed decisions about whether a paid plan is necessary for their needs.

Limited Country-Specific Tax Forms and Cost Basis Methods

Blockpit offers international support, including generic tax reporting in English, language support, and special pre-filled tax forms for certain countries. For US users, for example, it provides IRS Form 8949 and Schedule D. However, support may vary for users in certain countries.

Moreover, the platform only covers the First-In, First-Out (FIFO) method at the time of writing this Blockpit review. Unfortunately, the reliance on FIFO may limit the accuracy of the platform's tax calculations because the FIFO method often can’t accurately track the cost basis of complex transactions, like forks, airdrops, or staking rewards^[2].

The Blockpit team says that other cost-basis methods, like Last-In-First-Out (LIFO) and Highest-In-First-Out (HIFO), will be available soon.

Comparatively, competitors like CoinTracking and Koinly support more accounting methods.

Koinly lets users choose from four cost-basis methods (FIFO, LIFO, HIFO, and optimized HIFO) and preview their tax summary to determine what works best for their taxes. It even enables them to lock transactions each year and select a new cost-basis method to ensure they always pay the least tax possible.

This tax calculator also provides dedicated reports for more countries, including Canada and Australia, whereas Blockpit only offers the generic tax format in those areas.

Similarly, CoinTracking provides more options with 12 accounting methods and 13 country-specific report types.

Ultimately, I think Blockpit’s limited coverage and feature set may restrict its appeal to some users. While it provides international support and specific tax forms for certain countries, the level of support can vary significantly between regions. Additionally, the platform's current reliance on the FIFO cost basis method may not be optimal for all users, especially those seeking more flexibility in their tax strategies.

Blockpit Pricing

After looking at the pros and cons of this platform, including what user Blockpit reviews highlight, let’s discuss the financial aspect of using the software.

Similar to other crypto tax software, Blockpit pricing plans are tiered. Each tier is designed for different levels of trading activity, offering varying transaction limits and feature sets. The cost increases with the tier, providing users with the flexibility to choose a plan that best suits their specific needs.

The free plan allows you to track your portfolio across wallets and exchanges via the website or mobile app (iOS and Android), but it doesn't provide any tax-calculating function. To access your tax report and use the ready-to-file tax forms for up to 50 transactions per tax report, you need to subscribe to the Lite plan, which costs €49 per tax year.

Those who want to optimize their taxes need to purchase the Basic plan at €99 per tax year. This subscription also lets you submit up to 1,000 transactions.

Meanwhile, advanced traders with up to 25,000 transactions per tax year should consider the Pro plan at €249 per tax year. This plan also unlocks the 'portfolio insights' feature that provides a comprehensive overview of your investment activities.

If you still need more capacity, the Unlimited plan offers up to 500,000 transactions for around €592 per tax year.

If you've purchased a lower-tier Blockpit pricing package, you can upgrade to a higher license tier by paying only the difference between the existing license and the new license.

With such features and costs, how does Blockpit's pricing plan compare to competitors like CoinTracking and Koinly?

Blockpit is slightly pricier than the other two mentioned platforms. First, the free plan doesn't include a tax overview, which the competitors offer. Also, its most affordable paid plan is still more expensive than those of CoinTracking and Koinly.

For example, Koinly's most basic plan offers 100 transactions for $49 (around €46), while Blockpit provides just 50 transactions for a higher price (€49). CoinTracking, on the other hand, offers a monthly plan with 3,500 transactions for its most affordable option at $12.99 per month or $155.88 per year.

To help you better understand the differences between these platforms, here's a comparison table:

Table: Price and feature comparison between Blockpit, Koinly, and CoinTracking

Overall, Blockpit, while user-friendly, may have limitations in terms of pricing, feature set, and country support, making it less suitable for complex tax scenarios or users with extensive trading activity.

Still, if you're interested in using this platform, do note that it accepts various payment methods through Stripe, including credit cards, PayPal, SEPA Direct, EPS, Klarna, Giropay, and iDEAL.

At the time of writing this Blockpit review, the team says they're planning to add a crypto payment method, so you might be able to pay for your subscription using your favorite cryptocurrency in the future, which is cool!

If you're looking for a completely free option and have all your assets on Binance, I suggest checking Binance Tax.

How to Use Blockpit?

After exploring the pros, cons, and Blockpit pricing in the previous sections of my Blockpit review, let's now delve into the practical aspects of using this platform.

How to Register for Blockpit?

Blockpit offers both a web app and a mobile app (iOS and Android). Registration is quick and easy on both platforms and in this Blockpit review, I’ll show you how to do it on the web app.

Step 1: Go to Blockpit’s official website and click the [Start for free] button in the top right corner.

Step 2: Enter your email address and create a password. Read and accept the Privacy Policy and the Terms of Service. Then, click [Create Account]. Alternatively, sign up using a Google account.

Step 3: Select your tax residency and currency. Then, click [Confirm].

Step 4: Add your integration by choosing a blockchain, wallet, or exchange. An alternative is to import an Excel file by clicking on the [Import Excel] button in the top right corner.

Step 5: Connect your wallet, blockchain, or exchange by following the on-screen instructions.

For example, I connected my Coinbase Wallet and only needed to press the [Connect Wallet] button. Next, I accepted the integration from my Coinbase Wallet extension. You may need to enter a blockchain address for a blockchain integration and an API key and API secret for an exchange integration.

All set! You should be able to see a graph on your dashboard and use your Blockpit account. If you wish to subscribe to its paid plan, click your profile in the top right corner and select [Licenses]. On that page, choose a tax year and a plan you want to purchase.

How to Enter a Transaction Manually on Blockpit?

Besides importing a CSV or Excel file to Blockpit, you can manually add transactions to rebalance your transaction history or input transactions from platforms not yet integrated with Blockpit.

Step 1: Sign in with your profile and click [Transactions] on the top menu bar.

Step 2: Click the [+ Transaction] button in the top right corner of the page.

Step 3: Add a transaction by choosing the date and selecting the transaction label.

Step 4: Submit relevant details according to the transaction label you chose previously.

For example, if you click [Transfer], you should enter the “Outgoing” and “Incoming” details, like the integration, asset name, and amount.

Step 5: Click [Save] to complete the process.

By following these simple steps, you can accurately record your cryptocurrency transactions on Blockpit. This helps you generate precise tax reports and optimize your tax strategy. Remember, accurate data entry is crucial for accurate tax calculations, so take your time and ensure all information is correct.

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Conclusions

In this Blockpit review, I’ve covered the pros and cons, pricing, and provided a short guide to using this portfolio tracker and tax calculator.

Blockpit offers a user-friendly interface and essential features for crypto tax management, including integrations with popular exchanges like Binance, Bybit, and Kraken. However, it's important to consider its limitations, such as its pricing structure, limited country support, and reliance on the FIFO cost basis method.

For users with complex tax scenarios, high transaction volumes, or specific needs, other crypto tax trackers might be more suitable.

Ultimately, though, the best choice for you depends on your individual needs and budget. By carefully evaluating the pros and cons of each platform, you can select the one that best suits your crypto tax reporting requirements.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. A. H. Sánchez, B. M. Sastre-Hernández, J. Jorge-Vazquez, et al.: 'Cryptocurrencies, Tax Ignorance and Tax Noncompliance in Direct Taxation: Spanish Empirical Evidence';

2. T. Tironsakkul, M. Maarek, A. Eross, et al.: 'Context Matters: Methods for Bitcoin Tracking'.