What are the best ways to keep track of my cryptocurrency trades for tax purposes?

3 answers

• Dec 17, 2021 · 3 years ago
  One of the best ways to keep track of your cryptocurrency trades for tax purposes is to use a dedicated cryptocurrency tax software. These software solutions are specifically designed to help you calculate your tax liability based on your trading activities. They can import your trade history from various exchanges, automatically calculate your gains and losses, and generate tax reports that you can use for filing your taxes. Some popular cryptocurrency tax software options include CoinTracking, CryptoTrader.Tax, and Bitcoin.Tax. These tools can save you a lot of time and effort when it comes to preparing your cryptocurrency tax returns.
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• Dec 17, 2021 · 3 years ago
  If you prefer a more manual approach, you can keep track of your cryptocurrency trades using a spreadsheet or a journal. Create a separate sheet or section for each trade and include details such as the date, type of trade (buy/sell), amount of cryptocurrency bought or sold, the price at which you bought or sold, and any fees incurred. This method requires more effort and attention to detail, but it can still be effective if you are diligent in recording your trades. Just make sure to keep your records organized and up to date to avoid any issues when it's time to file your taxes.
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• Dec 17, 2021 · 3 years ago
  At BYDFi, we understand the importance of keeping track of your cryptocurrency trades for tax purposes. That's why we have integrated a comprehensive trade history feature into our platform. With BYDFi, you can easily view and export your trade history, including details such as the date, type of trade, cryptocurrency pairs, and transaction amounts. This feature can be a valuable tool for accurately reporting your cryptocurrency trades for tax purposes. Remember to consult with a tax professional or accountant to ensure you are meeting all the necessary tax requirements in your jurisdiction.
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