If you’re investing or trading in crypto, one thing is certain: tax reporting can get complicated—fast. With a growing number of wallets, exchanges, DeFi protocols, and NFT marketplaces, trying to track everything manually is nearly impossible. That’s where crypto tax software comes in.
In this post, we’ll break down the pros and cons of using crypto tax software, explore what to consider when choosing the best crypto tax software, and share our top picks based on real-world experience working with crypto clients nationwide.
Why Use Crypto Tax Software?
Crypto tax software platforms are designed to do the heavy lifting by:
- Aggregating data across wallets, exchanges, and blockchains
- Classifying and calculating gains, losses, and income from crypto transactions
- Generating detailed tax reports that can be used for self-filing or submitted to your tax preparer
For crypto investors with hundreds, or thousands of transactions, or those active in DeFi, NFTs, and staking, these tools are not just helpful. They’re necessary.
Pros and Cons of Crypto Tax Software
✅ Pros
1. Time-Saving Automation
Manually tracking crypto transactions is not only tedious, it’s prone to errors. Crypto tax software automates data imports and transaction categorization, saving you countless hours.
2. Centralized View of Activity
With integrations across major blockchains, wallets, and exchanges, these tools give you a consolidated view of your entire crypto portfolio and transaction history, essential for accurate reporting.
3. Flexible Tax Reporting Features
Most platforms allow users to apply IRS-approved cost basis methods like FIFO, LIFO, and Specific ID. Some even support switching from the universal wallet method to the wallet-by-wallet method, which is important for aligning with evolving IRS rules.
4. Audit-Ready Reports and CSV Exports
Crypto tax software platforms can generate IRS Form 8949, income summaries, and detailed audit trails to help support your tax position and provide documentation in case of an IRS inquiry.
5. Cost-Effective for Simple Portfolios
For users with low to moderate transaction volumes and minimal DeFi activity, software may be all they need, especially when paired with a crypto-savvy CPA.
❌ Cons
1. Accuracy Depends on Input Quality
Even the best crypto tax software is only as good as the data it receives. Missing cost basis, incorrect or duplicate imports, and misclassified transactions are common, especially with decentralized protocols.
2. Not Built for All Complexity Levels
DeFi, NFTs, wrapped tokens, bridging, and multi-chain activity often require manual review and reconciliation. Many platforms struggle with these newer or complex transaction types.
3. Manual Cleanup Often Required
Despite claims of full automation, accountants and users still need to manually reconcile transactions, fix errors, and recategorize items to ensure accuracy, especially for high-value portfolios.
4. Technical Learning Curve
Some software is more user-friendly than others. Without accounting knowledge or technical experience, users may misinterpret the output or assume it’s 100% correct when it’s not.
5. Tiered Pricing and Limited Features
Many platforms charge based on transaction volume or restrict key features to higher-priced tiers. This can be a surprise for users as their trading activity grows or complexity increases.
What to Consider When Choosing Crypto Tax Software
Whether you’re managing your own crypto taxes or supporting clients as a tax professional, choosing the right software depends on more than just cost. Here are key factors to consider:
1. Transaction Complexity
Are you (or your client) only trading on centralized exchanges, or are you involved in DeFi, NFTs, staking, DAOs, or bridging across chains? Choose software with strong support for your specific activities.
2. Volume of Transactions
Some platforms handle tens of thousands of transactions well, while others slow down or break with large datasets. Look for scalable tools if you’re dealing with high-frequency trading, bots, or historical data backlogs.
3. Exchange, Wallet & Blockchain Support
Ensure the software supports the exact exchanges, wallets, and chains you’re using. Not all tools have the same breadth or quality of integrations, especially for newer or smaller platforms.
4. Cost Basis and Accounting Method Flexibility
The ability to switch between FIFO, LIFO, Specific ID, and, crucially, support for the wallet-by-wallet method (vs. universal wallet method) is increasingly important as IRS guidance tightens. Choose a platform that allows this level of control or transition when needed.
5. Ability to Clean and Customize Data
Look for tools that allow manual edits, tagging, labeling, and filtering of transactions, which are essential for addressing data mismatches, dust, bridging misclassifications, and staking yield that gets auto-categorized incorrectly.
6. Ease of Use and Reporting
A clean interface and downloadable, audit-ready reports (including Form 8949, capital gains summaries, and CSVs) make a big difference for both users and CPAs. Some tools also include real-time portfolio tracking.
7. Accountant or Team-Friendly Features
If you’re a tax professional, check if the platform offers multi-client portals, user roles, team collaboration, and bulk report exports. Some software offers white-label options or partner portals for firms serving multiple clients.
Our Top Picks for the Best Crypto Tax Software
At Chainwise CPA, we’ve worked with just about every crypto tax platform on the market. While we tailor our approach to each client’s situation, these are the four tools we use most frequently in our crypto tax engagements:
🥇 CoinTracking.info — Our Top Pick
Best for: Active traders, power users, and clients with complex or high-volume activity
Why we love it: CoinTracking.info is one of the most robust crypto tax tools on the market. It offers powerful reporting, detailed filters, and flexibility for advanced accounting scenarios, making it ideal for serious investors and crypto-native clients. It also allows wallet-by-wallet tracking, which is becoming more important for IRS compliance.
Pros:
- Customizable and comprehensive reporting
- Handles large data volumes and complex transaction types
- Wallet-by-wallet method support
- Long-established and reliable
Cons:
- Steeper learning curve for casual users
- Interface feels a bit dated compared to newer apps
🥈 CoinTracker
Best for: Retail investors, Coinbase users, and passive crypto holders
Why we like it: CoinTracker has a clean, intuitive interface and easy integrations with many mainstream platforms. It’s ideal for users who need fast setup and relatively simple reporting.
Pros:
- Easy to use and navigate
- Seamless exchange and wallet syncs
- Integrated with TurboTax
Cons:
- Limited control over complex transactions
- May require manual cleanup for DeFi and NFT activity
🥉 CryptoTaxCalculator
Best for: DeFi users, NFT traders, and cross-chain activity
Why we like it: This tool shines when it comes to identifying and labeling newer transaction types. It’s a great choice for clients exploring on-chain ecosystems, though it may need some cleanup on larger or more experimental portfolios.
Pros:
- Solid DeFi and NFT recognition
- Beautiful UI and helpful transaction labeling
- Constantly adding support for new protocols
Cons:
- Can require substantial manual reconciliation
- Might be overwhelming for beginners
🏅 Koinly
Best for: Users looking for a polished experience with flexible reporting
Why we like it: Koinly balances ease of use with solid reporting and features for both individuals and professionals. It supports multiple accounting methods and lets users export audit-ready forms with a few clicks.
Pros:
- Clean UI and user experience
- Wide integration support
- Good for both simple and moderately complex portfolios
Cons:
- Some DeFi/NFT gaps still require manual intervention
- Limited team collaboration tools for accountants
Final Thoughts
No crypto tax software is perfect, but when paired with expert guidance, these tools can be incredibly powerful. At Chainwise CPA, we help clients choose the best crypto tax software for their portfolio and complexity level, and we ensure the results are fully reconciled and tax filing ready.
Whether you’re a casual investor or active in the DeFi trenches, we’re here to make sure your crypto taxes are handled with precision and peace of mind.
Need help picking the right crypto tax software or reconciling your transactions?
Reach out to our team at Chainwise CPA—we specialize in helping clients navigate crypto tax reporting with confidence.