How to do your Axelar (AXL) taxes with Koinly
Axelar is a platform that provides secure cross-chain communication for Web3, empowering developers to construct Interchain dApps that transcend the limitations of a single blockchain. But if you're transacting with AXL, you may have a tax bill. Don't worry, Koinly can help, here's how.
Follow these steps to sync your Axelar (AXL) data automatically to Koinly:
- Open your Axelar (AXL) wallet app
- Locate and copy your public address or key
On Koinly:
- Create a free account on Koinly
- Complete onboarding until you get to the Wallets page and find Axelar (AXL) in the list
- Select API > Paste the public address/key you copied above in the appropriate box
- Hit Import and wait for Koinly to sync your data. This can take a few minutes
- Review your transactions on the Transactions page to ensure everything is tagged correctly and no missing data
- Go to the Tax Reports page to view your tax liability!
- Head over to our help center
- Hit up our discussion boards - we might have already answered your question
- Ask us on social media - we're on Twitter and Reddit
- Contact us on email or live chat
- Got a feature request? Give us feedback on Canny
FAQs
What is Axelar?
Axelar is a platform that provides secure cross-chain communication for Web3, empowering developers to construct Interchain decentralized applications (dApps) that transcend the limitations of a single blockchain. Its security is underpinned by a proof-of-stake framework, drawing from the proven methodologies utilized by prominent blockchain networks such as Ethereum, Polygon, and Cosmos. Through its cross-chain communication capabilities, Axelar enables the creation of seamless user experiences, allowing users to effortlessly interact with assets and applications across various blockchains with a simple click.
How does Axelar work?
The Axelar network operates as a decentralized state machine designed to facilitate cross-chain requests seamlessly. At its core, the network leverages key protocols like the Cross-Chain Gateway Protocol (CGP) to enable smooth interoperability between different blockchain networks. CGP serves as the linchpin of the system, offering the flexibility to integrate new chains without being bound by the consensus rules of any particular blockchain. This protocol facilitates the efficient transfer of information across disparate blockchains, ensuring a cohesive and interconnected ecosystem.
What is AXL?
AXL is the native token for the Axelar network and can be used to pay transaction or network fees. Like other cryptocurrencies, AXL can also be bought, traded, or sold on exchanges.
Do I have to pay tax on my Axelar transactions?
Yes. Cryptocurrencies - including AXL - are taxable. The rules vary depending on where you live, but you'll pay Capital Gains Tax or Income Tax on profits from crypto. Learn more about the rules where you live in our crypto tax guides.
How do I calculate my Axelar taxes?
The easiest way to calculate your Axelar taxes is with a crypto tax calculator like Koinly. Just add your public address and Koinly will import your Axelar transaction history and calculate your gains, losses, income, and more.
