How To Connect Bitcoin (BTC) with Koinly

Are you investing in Bitcoin (BTC)? Whether you're trading, mining or farming - it's incredibly easy to do your crypto taxes with Koinly.

To get started, simply connect Koinly to the Bitcoin (BTC) blockchain via your public address or CSV file upload. Once connected, Koinly imports all your trades automatically. Next, Koinly calculates all your gains, income and expenses with easy-to-spot totals ready for your tax return. At tax time, simply download the Koinly tax report for your country and you’re good to file!

How to find your Bitcoin (BTC) public key

You can export your Bitcoin (BTC) xpub key from most wallets - but the way to get your xpub key varies depending on the wallet you're using. We've got a help guide on how to get xpub keys from many popular wallets. There are a few wallets that do not provide xpub keys - we have a recovery phrase method that will help you get your xpub key in these instances. 

Please note: your xpub key is different for every single blockchain, so you'll need to export it separately for all the coins you're transacting with, for example your xpub BTC key, xpub BCH key, xpub LTC key. 

How to connect Bitcoin (BTC) to Koinly via API

On Koinly

1. Sign up or login into Koinly and head to the wallets page.
2. Select add new wallet in the top right corner.
3. In the search bar, search for Bitcoin (BTC).
4. Select Bitcoin.
5. Enter your Bitcoin public key.
6. Select import.

How to connect Bitcoin to Koinly via CSV

Depending on the Bitcoin wallet you’re using, you may be able to export a CSV file of your transaction history from your wallet. We’ve got instructions on how to get a CSV file from a number of crypto wallets on our integration pages.

How do I check if my import is accurate?

We recommend checking through your imported transactions on Koinly to see if everything is imported, and that your transactions are correctly labelled. 

Koinly’s crypto tax software is smart, but incorrectly imported data can cause issues. 

Checking your transactions and correcting any inaccuracies lets Koinly calculate and generate the most accurate tax reports for you.

There are a few simple steps you can follow to make sure your tax report is accurate:

Sync all wallets, exchanges and blockchains

Start by making sure all your wallets and exchange accounts are synced with Koinly. This lets Koinly identify which transactions are transfers and which are deposits or withdrawals.

Look out for big numbers

Now, head to your transactions page in Koinly and take a little time to ensure they're all correct. You can filter by the type of transaction as well as by the amount to identify and amend any transactions that you believe to be incorrect. For example, large withdrawals or deposits that are actually transfers between wallets is an easy fix.

Review the labels of your transactions

Finally, review the labels on your transactions. Koinly will normally do this automatically, but there are some instances when transactions like rewards or mining income aren't marked in the imported data. It's always good to double check your transactions and use any of the following labels.

Withdrawal labels (sending funds)

Withdrawals refer to sending coins, tokens and funds. Koinly sees these as a disposal of an asset, which makes the transaction subject to Capital Gains Tax in most countries. But, some withdrawals are tax free and you should label these using withdrawal tags.

• Tag as cost: Tag any transaction fees.
• Sent to pool: Sending coins to a pool? Mark these as sent to pool. It lets Koinly know you still hold these assets.
• Tag as gift: Gifting crypto is a non-taxable event in many countries, so make sure to tag these, but only if capital asset gifts are tax-free in your country. Check our guides.
• Tag as lost: If you have crypto stolen, in many countries you can claim this as a loss.

Deposit labels (receiving funds)

Deposits refer to receiving new coins. Koinly sees deposits as a purchase at market price or an investment. They can be subject to Income Tax or Capital Gains Tax, depending on your location and the type of deposit. Check the labels to make sure the right tax is applied.

• Tag as airdrop: Most countries see airdrops as a bonus and apply Income Tax.
• Tag as loan interest: If you're loaning crypto and receiving interest, use this tag. Many countries apply Income Tax to interest.
• Tag as income: Crypto income is subject to Income Tax, not Capital Gains Tax - just like any other salary
• Tag as fork: Just like airdrops, new coins from a fork may be subject to Income Tax.
• Tag as mining: Most countries treat mining as a form of income and apply Income Tax.
• Received from pool: Use this tag to mark the capital you originally sent to a pool, not any rewards from it.
• Tag as reward: This tag can be used to mark any deposits you receive as a reward, for example staking rewards. In most countries, rewards are subject to Income Tax.

Exchange labels (trading funds)

Trading crypto for crypto, buying crypto with fiat and selling crypto for fiat are exchanges. Trades are sometimes taxed (depending on where you live), buys are never taxed and sells are always taxed. Koinly calculates all this on your behalf, so there's only one exchange tag you may need.

• Tag as swap: If a coin has exchanged its symbol or name, use the swap tag, as this is tax free.

It's really helpful to use our Getting Started Guide before reviewing your transactions. This can help you identify and resolve any issues in no time at all.