Do you use Binance to buy and sell your crypto? Staring down the barrel of a tax return? Learn how to quickly connect your Binance account to Koinly and get your tax report sorted in minutes. Just how quick? Watch and see! In this video we'll show you step by step instructions on how to do your cryptocurrency taxes with Binance and Koinly.
Wonder if cryptocurrency gets taxed? It sure does in most countries, which means as a crypto trader, you need to keep your records clean and report on all crypto-related activity in order to file an accurate tax return. Sounds like a lot of admin, doesn't it! Luckily the power of tech is here to save us all! Specifically, the power of Koinly to connect seamlessly with Binance - one of the world's most popular crypto exchanges.
In this video we'll show you how to import your Binance Transactions into Koinly for tax purposes. We will go over how to use the API auto-sync feature on Koinly as well as manually import csv statements in order to import your full Binance transaction history.
First, we will do a standard auto sync using the Binance API and then we'll will explain some of the limitations associated with the auto sync and why it’s important to also import a csv statement. For example, if you bought or sold using fiat.
To start your Binance import, sign into Koinly and go the Wallet page.
Head over to the Binance website:
This sync process may take longer than a few minutes. That is normal. Once Koinly and Binance are connected you'll notice yellow circle next to the Binance icon in your Koinly Wallet.
Why? Koinly has calculated certain assets from the imported data and it's not matching what the API is reporting on the exchange.
You can click on the yellow icon to see what the balance differences are. Minor differences are normal and can be safely ignored. If you notice any large difference then it may be due to API limitations. In order to resolve these issues, head to Binance and download the csv file that has your complete transaction history.
Take a look at the Binance troubleshooting page. As you can see there will be various potential solutions that Koinly will offer. The first one is in regards to airdrops / forks.
The second one is the one we are most interested in. The Binance API does not allow access to Fiat Purchases, Mining, income and BSswaps. This could affect what the API is able to import if you have say done some futures trading and purchased crypto using a credit card on Binance.
To fix this:
This is all read-only data which means Koinly will only be able to read your history, and not actually trade or transfer funds. Using Koinly to compute your crypto tax is a safe way to import data.
Once you've hit 'Authorize' Koinly will now import all transactions from your Coinbase account. This takes a couple of minutes.
From the Koinly transactions tab, you can see exactly how Koinly deals with these types of transactions.
And that's it! You've just learnt how to connect your Binance account to Koinly which will make doing your crypto taxes a piece of cake!