How to Integrate Koinly and Bitfinex

How to integrate Bitfinex with Koinly

Bitfinex is a popular crypto exchange for advanced investors looking to conduct large transactions with a range of digital assets and a host of trading options including margin trades and lending.

How to get a tax statement from Bitfinex

You might be wondering, does Bitfinex provide CSV tax and trade history reports? Is it even possible to get tax info and statements from Bitfinex? What about a Bitfinex tax API? The good news is, while Bitfinex might not provide tax forms and documents, Bitfinex does offer 2 easy ways to export transaction and trade history to our cryptocurrency tax software.

Bitfinex pairs with Koinly through API or CSV file import to make reporting your crypto taxes easy. Once connected, Koinly becomes the ultimate Bitfinex tax tool. How? Koinly will calculate your Bitfinex taxes based on your location AND generate your EOFY tax report, all within 20 minutes! All you’ll need to do at tax time is download your Bitfinex tax statement from Koinly and file it with your local tax authority. Done!

Connect to Koinly with the Bitfinex tax report API

On Koinly

1. Sign up or log in to your Koinly account and head to the wallets page.
2. Select add new wallet: Bitfinex.
3. Select set up auto-sync.
4. Head over to Bitfinex.

On Bitfinex

1. Log in to your Bitfinex account.
2. In the top right hand corner, scroll over the profile icon to open up the drop down menu.
3. From the drop down menu, select security.
4. On the right hand navigation bar, select API.
5. Select create new key.
6. The permissions granted should already be set to read-only access, but you may want to double check this.
7. Select generate API key.
8. Complete the two-factor verification.
9. Copy both the API key and the API key secret from Bitfinex.

Back to Koinly

1. Paste the API key into the API key box.
2. Paste the API key secret into the API secret box.
3. Select secure import.

How to import your Bitfinex tax report CSV file to Koinly

On Koinly

1. Sign up or log in to your Koinly account and head to the wallets page.
2. Select add new wallet: Bitfinex.
3. Select import from file.
4. Head over to Bitfinex.

On Bitfinex

1. Log in to your Bitfinex account.
2. In the top right hand corner, scroll over the profile icon to open up the drop down menu.
3. Select reports.
4. Select export in the top navigation bar.
5. In the new pop-up, under data to export, select ledgers from the drop down menu.
6. Select export.
7. This CSV file is sent via email, so log into your email account and download the CSV file there.

Back to Koinly

1. Upload your CSV file.
2. Select import.

How do I check my Bitfinex import is accurate?

Koinly is pretty clever and it's always getting smarter to make our users lives easier. However, if there are issues with imported data, Koinly can't generate an accurate tax report. Not to worry, you can follow a few simple steps here to ensure your tax report is accurate.

Add all wallets, exchanges and blockchains

Start by making sure all your wallets and exchange accounts are synced with Koinly. This lets it know which transactions are withdrawals or deposits and which are actually just transfers between wallets and therefore non-taxable.

Look out for big numbers

From here, check through your imported Bitfinex data and check your balance is correct. If you're using the API integration method, Koinly will be able to do this for you and it will flag any mismatch in balance between your Bitfinex account and your Koinly account. If you're using the CSV file import method, make sure to check your deposits and withdrawals to spot any that you believe are transfers. This guide shows you how to fix this.

Review how your transactions are labelled

Now head to the transactions page to look through your Bitfinex transactions. Take the time to check through your transactions to ensure they're all labelled correctly. You can use the following labels to tag your transactions:

Withdrawal Tags (sending funds):

Withdrawals are considered a disposal of asset automatically, which makes them subject to Capital Gains Tax. There are, however, some disposals that are tax free, depending on your location. Use withdrawal labels to tag these transactions.

• Tag as gift: Gifting crypto is tax-free in lots of countries. Check your country's crypto tax rules and tag as a gift if it's tax free in your location.
• Tag as lost: Tag any stolen crypto as lost and claim as a loss, depending on your country's tax rules.
• Tag as cost: The cost label is used to tag transaction costs and fees.
• Sent to Pool: If you're sending coins or tokens to a staking pool, tag these withdrawals as sent to pool, so Koinly knows they aren't disposals.

Deposit Tags (receiving funds):

A deposit is anytime you receive new coins. As standard, Koinly treats all deposits as purchases at market price or investments. However, there are times when you receive new coins - like through an airdrop - and these could be subject to Income Tax instead. Use deposit tags to label these transactions.

• Tag as airdrop: Many countries see airdrops as a kind of bonus and therefore subject to Income Tax as opposed to Capital Gains Tax.
• Tag as fork: Like the above, any new coins received as a result of a fork can be seen as a bonus and subject to Income Tax.
• Tag as loan interest: If you're loaning crypto and receiving interest, many tax authorities consider this to be income.
• Tag as income: Getting paid in crypto is viewed as income and is subject to Income Tax.
• Received from Pool: You should use this tag to mark the capital you sent to a given pool, not any rewards as a result.
• Tag as reward: Use this tag to label any rewards received from staking, as well as any other rewards like from referral schemes. Like airdrops, rewards are viewed as a kind of bonus and often subject to Income Tax.

Exchange (trading funds):

An exchange refers to buying or selling crypto for fiat, as well as exchanging crypto for crypto. Koinly identifies these exchanges from imported data and calculates tax accordingly. There is one instance when you'll need to tag an exchange as a non-taxable event.

• Tag as swap: The swap tag is used if a coin has changed symbol or names. This is considered a transfer, not a trade.

Of course, if you're an advanced trader with a huge list of transactions to go, labelling every single one can be a bit of a task! Through API integration, Koinly automatically labels transactions, so in many instances you won't need to check every transaction. However, if you need any help on how to check larger accounts as well as some more helpful tax reporting tips, this guide is a great resource.

How do I troubleshoot my Bitfinex integration to Koinly?

Koinly has a great help section, full of common queries from our users and solutions from our customer support team. Some of our most frequently asked questions about integrating Bitfinex with Koinly include:

• Why are transfers between my own wallets showing a profit/loss?
• Why is my dashboard graph incorrect?
• How can I merge transactions manually?
• How do I label other gains like futures?

You can find all Bitfinex and Koinly help here. Don't worry if you can't find the answer you're looking for. You can also check out our Koinly community or get in touch with our customer support team here.