How to do your Bitkey taxes with Koinly
Bitkey is a self-custody Bitcoin wallet by Block, Inc. that combines a mobile app, hardware device, and recovery tools to offer secure, user-friendly Bitcoin management using a 2-of-3 multi-signature system. But if you have Bitkey transactions, you might have a tax bill. Koinly can help. Here's how.
Follow these steps to sync your Bitkey data automatically to Koinly:
- Open your Bitkey wallet app
- Copy the public address for every coin that you have on it (even the ones with a zero balance)
On Koinly:
- Create a free account on Koinly
- Complete onboarding until you get to the Wallets page and find Bitkey 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 Bitkey?
Bitkey is a self-custody Bitcoin wallet developed by Block, Inc. (formerly Square), the company co-founded by Jack Dorsey. Launched in December 2023, Bitkey is designed to give users full control over their Bitcoin through a secure, user-friendly system that includes a mobile app, a hardware device, and recovery tools. It uses a 2-of-3 multi-signature setup for enhanced security, where two of three keys—stored on the phone, hardware device, and Bitkey’s server—are needed to authorize transactions. The wallet supports recovery without seed phrases and integrates with platforms like Cash App and Coinbase.
Is Bitkey safe?
Bitkey is generally considered a secure Bitcoin wallet, using a 2-of-3 multi-signature system that requires two of three keys—stored on the user’s phone, hardware device, and Block’s server—to authorize transactions, reducing the risk of theft or loss. The hardware device includes strong protections like secure boot and anti-tamper measures. However, some concerns exist around privacy and reliance on Block, since one key is stored on their servers, and wallet recovery depends on their infrastructure. While Bitkey is a strong choice for users seeking convenience and security, those prioritizing full independence and privacy may prefer wallets that don't involve third-party servers.
Does Bitkey provide tax documents?
No, but you can use a crypto tax calculator like Koinly to do it for you, just add your Bitkey address, and Koinly imports your transaction data and calculates your taxes for you.
