In 2018, investors in conventional markets can use a trading terminal to research and execute a wide variety of financial transactions instantly. They can then use advanced analysis tools to pore over their progress, alert themselves to incoming events, and pore over past progress in agile detail. Things like taxes are already calculated as they work. These are simply some of the benefits that technology has brought to the finance industry.
It is a bit strange then, that a tech-based domain like the crypto industry is still so far behind the times in terms of these kinds of tools. Tax is a nightmare to keep track of when trading. It is often difficult to execute fast analysis on complex portfolios. Furthermore, most users’ data is siloed in centralized platforms, not under the user’s direct control.
These are all technical concerns that technology can address. This has been the aim of analysis platform CoinTracking for over 5 years, and now they are releasing new features which will be particularly relevant in the age of increased scrutiny of crypto traders.
The CoinTracking site describes their pitch as:
“Manage all your digital coins in one place. Whether you have only one or thousands of coins, CoinTracking.info lets you easily monitor their growth.”
You can keep track of their value, your profit/loss and a lot of other interesting information in real time.
CoinTracking.info is not restricted to Bitcoin. It supports more than 6000 existing currencies.
In terms of revenue generation in a volatile crypto market, this can be of great benefit if the user configures it efficiently. Many traders rely on hearsay and narrow technical analysis for trading decisions. An analytical portfolio appraisal using advanced charting and quant tests as enabled by CoinTracking is a far more modern approach to take.
Secondly, tax is both a risk and and a source of lost time for traders. The company outlines how it changes this:
“CoinTracking offers a specially developed tool for the annual tax return, among other things according to the standards of capital gains, FBAR, Form 8949 and the German Income Tax Act.”
Being in the space for a while now, CoinTracking have built a decent rep for themselves. In a review from nulltx.com, the platform’s standard and features was praised:
“The name CoinTracking does exactly what it says. With a wide range of supported cryptocurrencies – including bitcoin, Ethereum, Ripple, and thousands of others – filling in those tax forms becomes very straightforward.”
Tools for Modern Traders
While fundamental analysis is still the cornerstone of crypto trading, technical considerations are a necessary part of any strategy – and taxation is a fixed and important consideration for everyone. CoinTracking are aiming to continue to refine their offering to address these kinds of needs even more as the platform develops.
Many traders bemoan the lack of developed tools for crypto investing compared to what is available to mainstream financial management. Companies have made fortunes in the latter providing solutions like the Bloomberg terminal, and CoinTracking wants to fill this role for crypto.