How to do your Sparrow Wallet taxes with Koinly
Sparrow Wallet is a non-custodial, Bitcoin only wallet - but if you have Bitcoin transactions, you might have a tax bill. Koinly can help. Here's how.
Follow these steps to sync your Sparrow Wallet data automatically to Koinly:
- Open your Sparrow Wallet 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 Sparrow Wallet 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!
Multisig wallets are not currently supported - add them using CSV files or by listing all bc1q*** addresses ever used
- 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 Sparrow Wallet?
Sparrow Wallet is a desktop Bitcoin wallet designed for users who value security, privacy, and advanced functionality. It supports both single- and multi-signature setups, offers detailed coin control and transaction labeling, and integrates privacy features like Tor and PayNyms (BIP47). The wallet connects to various backends—including Bitcoin Core and Electrum servers—and is compatible with multiple hardware wallets, including air-gapped devices. Open-source and cross-platform, Sparrow provides a powerful interface for managing Bitcoin transactions, making it a popular choice among privacy-conscious and technically-inclined Bitcoin users.
Is Sparrow Wallet safe?
Sparrow Wallet is generally considered a secure option for managing Bitcoin, offering users full control over their private keys and transactions. It employs strong encryption methods, such as Argon2 for password hashing, to protect wallet files. As an open-source application, its code is publicly available for review, allowing the community to audit and verify its security. While Sparrow provides robust security features, the overall safety of your funds also depends on following best practices, such as securing your computer, using strong passwords, and regularly backing up your wallet.
Does Sparrow Wallet provide tax documents?
No, but you can use a crypto tax calculator like Koinly to do it for you, just add your Sparrow Wallet address and Koinly imports your transaction data and does the rest.
