CoinLedger Review

If you're asking, "Is CoinLedger legit?" you're not alone. Many are searching for a comprehensive CoinLedger review to see if it's really a reliable tool to streamline the tax reporting process.

Especially if you've been moving some volumes on exchanges like Bybit or Binance, finding the best method to report your earnings becomes more important. As you consider your options, having a clear understanding of CoinLedger’s pricing model, features, and potential drawbacks might help narrow down your choice.

Let's take a deeper look into what the platform has to offer. I'll also shed light on any question you have, especially if you've been wondering is Coinledger safe, or comparing it to other crypto tax programs like Koinly and CoinTracker. Let's get started!

Verdict at a Glance: CoinLedger is a robust crypto tax reporting tool that simplifies tax filing for crypto investors. It also integrates well with various exchanges and wallets. While it excels in tax-related features, a key drawback lies in the absence of cryptocurrency payments, limiting users to debit/credit card and Stripe payments. Despite this, CoinLedger remains one of the go-to platforms for individuals seeking streamlined tax solutions for their crypto portfolios.

What is CoinLedger?

Let’s kick off this CoinLedger review by unpacking what the platform is all about. CoinLedger, formerly known as CryptoTrader.Tax, was launched in 2018 by David Kemmerer, Lucas Wyland, and Mitchell Cookson. 

Frustrated by the lack of tools to simplify crypto tax reporting, they decided to take matters into their own hands. What began as a mission to solve their own challenges has grown into a trusted solution for tracking transactions, managing portfolios, and navigating the chaos of tax season that every crypto enthusiast knows too well.

Just like that, CoinLedger was born!

Since then, CoinLedger has grown faster than a bull run, with over 500,000 users and $70 billion in transactions processed (as of writing). Along the way, it has helped crypto investors save $50 million through tax-loss harvesting. Now, CoinLedger is here to demystify the complicated world of crypto taxes, providing tools that are simple, effective, and a little less stressful.

CoinLedger Review: PROS

As we move forward with the Coinledger review, let's discuss the various strengths of the platform and how it serves both new and experienced crypto investors.

Seamless Collaboration With Tax Professionals

A common challenge for crypto investors is the complexity of handling tax reports, especially when there is a high volume of transactions.

To address this, CoinLedger offers a feature that eliminates the need for back-and-forth email exchanges when collaborating with tax professionals—a process that can often expose sensitive financial information to unnecessary risk.^[1] Instead of relying on email, CoinLedger allows users to invite accountants to directly manage and review their tax reports.

The process is seamless—users create a Tax Pro account for their hired professional and invite them through the [Add Tax Professional] button located at the top right of the tax report page. Once granted access, the tax professional can review and make necessary edits to the portfolio and tax reports, all from one easy-to-use dashboard.

CoinLedger also provides an added layer of convenience by flagging any transactions that lack a cost basis. That way, you can save time and reduce the chances of errors. What's more, generating your tax reports is a breeze—just click the final report you want to export in the [Tax Report Downloads] section.

If you're unsure about finding the right tax professional, CoinLedger provides a directory of certified accountants available for hire. Some CoinLedger reviews appreciate how these features, including transaction flagging, make the process more efficient and accurate.

Automated Taxable Event Identification

With the complexity of crypto tax reporting, having a platform that can distinguish between different transaction types saves time and reduces the potential confusion that comes with the tax season.

So, is CoinLedger legit in helping its users notice such discrepancies? Good news, the platform can automatically identify taxable events like staking rewards and separate them from non-taxable transactions, such as wallet-to-wallet transfers. As a result, all relevant taxable activities are accounted for, reducing the chances of an oversight.

CoinLedger goes even further by automatically calculating the cost basis of transactions, a crucial step for determining capital gains or losses. A common challenge with crypto tax software involves missing cost basis errors, often resulting in misreporting and potentially overpaying taxes.

These errors often pop up during wallet-to-wallet transfers, leaving your tax software clueless about the original cost basis (the price you paid to acquire the crypto).

In many cases, platforms default to setting this value at zero, causing overstated capital gains when you sell. Thankfully, CoinLedger proactively alerts you to such issues so you can correct them and potentially save thousands on your taxes.

What also really sets CoinLedger apart is its ability to auto-match on-chain transactions and streamline reconciliation. Instead of users spending hours dissecting their records to pinpoint missing data or manually editing problematic entries, the platform handles the detective work.

How so? CoinLedger’s Missing Cost Basis Troubleshooting will scan your records and connect the dots by ensuring every transaction is properly matched. Thus, users can avoid the painstaking task of line-by-line review and focus on what truly matters—keeping more of their hard-earned crypto gains.

Latest Bybit Coupon Found:

Free Plan With Core Features Access

The idea of "free" in the world of crypto tax software might sound too good to be true, but CoinLedger actually delivers on it. As noted in various CoinLedger reviews, the platform offers a free start option across all pricing tiers. Users can access core features like portfolio tracking, unlimited revisions, and auto-sync for exchanges and wallets without spending a dime.

This isn’t a watered-down freebie, either. The free plan includes powerful tools such as capital gains overviews, DeFi and NFT tracking, margin trading support, and error reconciliation. Plus, it supports over 20,000 cryptocurrencies and provides multiple accounting methods like FIFO and LIFO.

If you're unfamiliar with those terms, FIFO (First In, First Out) and LIFO (Last In, First Out) are strategies for calculating capital gains based on the order of your crypto transactions.

With FIFO, the first assets you purchase are considered sold first, which can lead to different tax implications depending on how long you’ve held them.^[2] For instance, crypto held for over a year might qualify for long-term capital gains discounts.

Meanwhile, LIFO focuses on the most recently purchased assets, typically yielding higher cost bases and potentially lower taxable gains in a rising market.

For users who need more than just the basics, CoinLedger offers various paid plans that expand on the free plan’s functionality. However, the fact that you can do quite a bit without paying makes the free plan a standout feature. It’s suitable for anyone who wants to dip their toes into the world of crypto tax management without diving headfirst into the cost.

Password and Credential Security Measures

After some time, you may be wondering, is CoinLedger legit in terms of security? Yes, the platform employs advanced measures to safeguard user information and transaction data. Starting with password protection, the platform enforces strict complexity standards, ensuring credentials are hashed with the PBKDF2 function using HMAC-SHA256, 128-bit salt, and 256-bit subkeys.

With over 10,000 iterations of this encryption, users can feel confident their passwords are protected from brute force attacks. This commitment is frequently highlighted in most CoinLedger reviews, where users express satisfaction with the platform's robust approach to credential security.

As users often ask, "Is CoinLedger safe?", the answer lies in its comprehensive security framework. The platform's robust security toolkit sets the seal on both data and asset protection. All traffic is encrypted in transit with 256-bit encryption, complemented by TLS/SSL-only endpoints.

Consequently, sensitive financial data shared between wallets and crypto exchanges remains protected. For instance, users syncing transactions between CoinLedger and their exchange accounts, either on Binance or Coinbase, benefit from these industry-standard encryption protocols.

	BINANCE	COINBASE
Pros	A very well-known crypto exchange platform More than 500 different cryptos available Two-factor authentication P2P trading option Emphasis on security and KYC Supports fiat-crypto acquisitions	Fiat currencies - accepted Simple to use Accepts only the most trustworthy cryptocurrencies Very secure
Cons	Might be a bit difficult for beginners	Some of the less-known coins aren't supported
Value For Money
Customer Support
	Visit site Read review	Visit site Read review

Table: A comparison of Binance and Coinbase.

Anyone wondering is CoinLedger safe can also be assured that the platform goes to great lengths to safeguard its users' data. Further bolstering its security credentials, CoinLedger hosts its servers in a virtual private cloud (VPC) with strict network access control lists (ACLs).

By limiting internal access and guarding against unauthorized requests, the platform significantly reduces the risk of malicious attacks. These comprehensive measures are often brought up in CoinLedger reviews, where users praise the proactive steps taken to maintain a secure environment for handling crypto tax data.

CoinLedger also ensures uninterrupted service and data recovery through its infrastructure, spread across multiple availability zones. In other words, users retain access to critical tax data and reports even during outages or natural disasters. These failover methods are particularly reassuring during the tax season when uninterrupted access is crucial for compliance.

Transaction data management further underscores CoinLedger’s dedication to user privacy. Its exchange API integrations are strictly read-only, and file imports are discarded after the relevant transaction history is read into memory. Moreover, users can fully control their data by deleting all transaction records and API connections directly from their accounts.

Did you know?

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CoinLedger Review: CONS

While this CoinLedger review highlights several strong points that make the platform appealing for crypto investors and traders, it’s important to take a closer look at areas where the service might fall short. Understanding these potential drawbacks is crucial to determine if CoinLedger aligns with your specific needs and expectations.

Limited Payment Options

One downside worth noting is CoinLedger's lack of support for cryptocurrency as a payment method. At the time of writing this CoinLedger review, the platform accepts payments only via debit or credit cards and through Stripe.

Needless to say, this limitation restricts payment flexibility for users who prefer to settle fees using digital assets. For a platform catering specifically to crypto enthusiasts, this restriction might seem somewhat out of touch with the needs and preferences of its target audience.

Many users in the crypto space value platforms that embrace digital assets as a payment option, as it aligns with their decentralized financial practices. A crypto investor managing their taxes might prefer to pay fees directly in Bitcoin, Ethereum, or other cryptocurrencies they already hold.

Being unable to do so might lead to additional steps, such as converting their holdings into fiat currency before making a payment. Not only does it incur extra time, but the process also results in additional transaction fees, which can feel like an unnecessary hurdle for users looking for a seamless experience.

Reading through CoinLedger reviews, it’s apparent that expanding payment options to include cryptocurrencies could better cater to the platform’s target audience. That said, the current methods work well for users familiar with traditional systems.

Nevertheless, adding crypto as a payment option would provide greater flexibility and attract those looking for a more crypto-native solution. With competitors offering a broader range of payment methods, this limitation could prompt some users to explore alternatives that align more closely with their preferences.

Manual Edits for Miscalculations

Another challenge noted in several CoinLedger reviews is the occasional need for manual adjustments in unusual transactions, such as certain deposits or withdrawals.

Although CoinLedger does an impressive job automating the majority of tax calculations, it isn’t always flawless when it comes to capturing every single detail of every transaction. In some cases, users might need to step in and make corrections to ensure everything is properly categorized and reported.

For instance, if you've imported data from multiple exchanges or wallets, a unique transaction—like a transfer to a less commonly used network—might not be categorized correctly. While these occurrences are rare, they can still require users to spend additional time verifying and editing their records.

This kind of manual intervention can feel like a setback for users who are new to crypto tax reporting or those who have very busy, high-volume portfolios. While these issues are less likely to arise for individuals with straightforward crypto transactions or those who use fewer platforms, the drawbacks are something to keep in mind if you have a more complicated portfolio.

So, if you're managing a variety of assets or often moving tokens between different wallets and exchanges, you might need to spend a bit more time making sure everything is properly categorized.

CoinLedger Alternatives

It's important to explore other options that might suit your needs based on the insights I've gathered in this CoinLedger review. Different users might prefer other platforms that offer unique features, pricing models, or support for various tax filing platforms. Let’s check out some of these alternatives to see how they stack up in comparison.

CoinLedger VS CoinTracker

CoinLedger and CoinTracker are both top players in the crypto tax software game, but they come with their own distinctive features. The comparison of CoinLedger VS CoinTracker reveals key distinctions in exchange support, pricing, and advanced features.

CoinLedger supports over 100 exchanges, including popular ones like Binance and Bitfinex, with seamless syncs for transactions. It also has a free plan that gives users the chance to track portfolios, access DeFi and NFT tools, and more without spending a penny.

For those requiring more advanced features like tax-loss harvesting and expanded reporting capabilities, CoinLedger offers competitively priced paid plans starting at $49 per year. Additionally, the platform’s intuitive Missing Cost Basis Troubleshooting makes it easier for users to resolve common tax reporting errors caused by transfers between wallets.

Conversely, CoinTracker excels in its broad exchange support, connecting with over 500 exchanges, including Bybit and Binance. This extensive network makes it ideal for users managing assets across multiple, less mainstream exchanges.

	BYBIT	BINANCE
Overall Score	9.8	9.6
Best For	More Advanced Users	Buying, Trading, and Holding a Wide Variety of Cryptocurrencies
Operating Countries	Russia, South Korea, United Kingdom, Ukraine, Turkey, +150 more	Turkey, Russia, Argentina, Vietnam, Ukraine, + 40 more
Latest Coupons	$30,000 BONUS All Bybit Coupons	SECURE $600 BONUS All Binance Coupons
Verdict	A popular crypto derivatives exchange with some super-low trading fees.	One of the leading crypto exchange platforms in the industry.
	Visit site Read review	Visit site Read review

Table: A comparison of Bybit and Binance.

Like CoinLedger, CoinTracker supports tax-loss harvesting. The entry-level paid plans are slightly more expensive, though, starting at $59 annually. It also caters to more advanced users with features like automated DeFi detection, which adds an extra layer of convenience for experienced traders working with decentralized finance platforms.

Another feature that sets CoinTracker apart is its spam detection system. Leveraging Blockaid’s advanced APIs, the platform can now accurately differentiate between legitimate and spam tokens across all supported chains. All suspicious tokens will be flagged or hidden. Thus, users can have a clean and organized transaction history, which is particularly beneficial for users managing a large volume of trades.

So, where does the CoinLedger VS CoinTracker debate stand?

If you need simple, easy-to-use software with lots of integrations, CoinTracker is your go-to. However, if you're looking for more personalized service, CoinLedger is the one to consider.

CoinLedger VS Koinly

If you’re debating between CoinLedger VS Koinly, it’s important to weigh your specific tax and user experience preferences carefully. In terms of security, both platforms emphasize protecting user data.

CoinLedger uses strong encryption practices and follows stringent password protection standards, providing users with a secure environment for their crypto data.

Likewise, Koinly adheres to best practices for data security. Its SOC 2 and ISO 27001 certifications are particularly relevant for users prioritizing platform compliance. Both services offer solid protection, but Koinly’s certification might give some users extra confidence in its security measures.

While CoinLedger offers tax-loss harvesting only to paid subscribers, Koinly provides tax-loss harvesting on its free plan, giving users access to this feature without requiring an immediate upgrade (although Canadian users do not have access to it on the free plan). For individuals looking to maximize their tax savings without committing to a paid plan right off the bat, Koinly’s more accessible approach could be a major selling point.

CoinLedger does, however, provide a more personalized experience with services like the “Done For You” feature, where their team assists in importing transactions and completing tax filings on your behalf. Moreover, the platform's free plan provides useful tools like portfolio tracking, capital gains overviews, and syncing with exchanges. 

Koinly’s approach, on the other hand, is more self-service-oriented, with flexible pricing that includes custom plans for high-volume traders—ideal for those with complex portfolios.

At the end of the day, the CoinLedger VS Koinly debate boils down to what you prioritize. If you're looking for a more hands-on, personalized approach with access to advanced tax tools (like tax-loss harvesting) for a relatively low cost, CoinLedger might be your best bet.

If flexibility, an accessible free plan, and broader integrations are more important to you, though, Koinly could be the winner—especially if you want to explore a larger set of exchanges and manage your taxes on your own terms.

CoinLedger Pricing

Taxes might not be the most exciting topic, but CoinLedger’s pricing model makes dealing with them a little less painful. Many CoinLedger reviews frequently highlight its tiered approach based on transaction counts, letting users pay for exactly what they need—no more, no less. For anyone trying to keep their tax season stress-free, that’s a welcome touch of simplicity.

CoinLedger’s pricing structure varies based on the number of transactions a user processes during a given tax year. For those starting out, the platform provides a free option that enables users to track portfolios and preview tax reports.

However, to access full functionality, such as syncing with tax software or downloading detailed reports, users need to move to one of CoinLedger’s paid tiers. The DIY pricing options are as follows:

• Hobbyist: Up to 100 transactions for $49/year.
• Investor: Up to 1,000 transactions for $99/year.
• Pro: Up to 3,000 transactions for $199/year.
• Pro+: Up to 10,000 transactions for $299/year.
• Unlimited: Unlimited transactions for $499/year.

Of course, not everyone wants to tackle taxes alone. For those who prefer a more hands-off approach to tax season, CoinLedger provides additional options.

The "Expert Review" service is available for $499, where a professional helps review your imported data and offers guidance throughout the tax process. Alternatively, users can choose the "Done For You" service, priced at $300 per hour, where an expert handles everything from transaction imports to finalizing tax reports.

CoinLedger’s pricing structure is designed to be straightforward and flexible, catering to both hands-on users and those who want a little help. By selecting the right plan based on transaction volume, users can effectively manage their tax reporting needs without feeling overwhelmed.

Conclusion

After breaking down the Coinledger review, it’s clear that the platform presents a strong set of features designed to simplify the often complex crypto tax process. Support for major exchanges such as Bybit and Binance provides seamless integration, helping users track transactions from various platforms with ease.

The platform's automated transaction tracking further reduces the need for manual data entry, and its customizable reports also allow users to tailor tax documentation to their specific needs.

Despite those strengths, there is a downside regarding payment options. Unlike some competitors in the crypto space, the platform does not accept cryptocurrency payments, limiting users to paying via debit/credit cards or Stripe. For many crypto investors, being unable to pay fees using their digital assets might feel like a missed opportunity.

Still, for those who prioritize efficiency, accuracy, and ease of use when managing their crypto taxes, CoinLedger continues to be one of the leading choices in the market. Despite the payment limitations, the platform’s robust integration with exchanges, automated tools, and strong reputation for reliability make it a top contender for those seeking a simple and smooth tax management solution.

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. Raja S. H.: ‘Securing Risks of Electronic Mail Based on the Type of Organization’;

2. Misra A.: ‘A Taxmans guide to taxation of crypto assets’.