How to Use Koinly: Step-by-Step Guide for Beginners (2026)

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How to use Koinly is a common question among crypto investors who want an accurate and stress-free way to calculate their crypto taxes. While Koinly automates much of the process, understanding how it works step by step is essential to ensure your tax reports are correct.

This beginner-friendly guide explains how to use Koinly from start to finish, what to review carefully, and how to avoid common mistakes — even if you’ve never used crypto tax software before.

If you’re still deciding whether Koinly is right for you overall, start with our main Koinly review.

What Is Koinly and How Does It Work?

Koinly is a crypto tax tracking and reporting platform that automatically imports your transactions from exchanges, wallets, and blockchains, then calculates capital gains, losses, and income based on your activity.

Instead of manually tracking trades, Koinly:

• Syncs transaction data automatically
• Identifies taxable vs non-taxable events
• Calculates gains using accepted accounting methods
• Generates tax-ready reports

You can import and review everything for free, then upgrade only if you need official tax reports.

Step 1: Create a Free Koinly Account

Start by creating a free account on Koinly.

At this stage:

• No payment is required
• You can explore the dashboard
• You can import data without committing

This allows you to verify accuracy before upgrading.

Step 2: Add Your Exchanges and Wallets

This is the most important step.

In Koinly, go to Wallets and start adding:

• Centralized exchanges (via API)
• Non-custodial wallets (via public address)
• CSV files (if APIs aren’t available)

Best practices:

• Add all exchanges and wallets you’ve ever used
• Don’t skip inactive wallets
• Use read-only API keys only

Missing data is the #1 cause of incorrect tax calculations.

Step 3: Let Koinly Sync and Process Transactions

Once connected, Koinly will:

• Import transaction history
• Detect transfers between your own wallets
• Flag potential issues or missing data

Depending on your activity, this may take a few minutes.

Do not rush to generate reports yet — reviewing data comes next.

Step 4: Review Transactions Carefully (Critical Step)

Before paying for any reports, review your transactions.

Focus on:

• Transfers labeled correctly (not taxable)
• Staking and income classification
• DeFi transactions that may require manual review
• Missing cost basis warnings

Koinly highlights issues clearly, but it does not silently guess — which is a good thing.

If accuracy matters to you, we examined this topic in detail in our Is Koinly accurate guide.

Step 5: Choose Your Accounting Method

Koinly supports common accounting methods such as:

• FIFO
• LIFO
• HIFO (where applicable)

You can switch methods and instantly see how your tax liability changes.

Most beginners should stick with the default method recommended for their country unless advised otherwise by an accountant.

Step 6: Check Your Transaction Count and Pricing Tier

Koinly pricing is based mainly on:

• The number of transactions in a tax year
• Whether you need downloadable tax reports

Before upgrading, check:

• Your total transaction count
• Which plan you fall under

For a full explanation of plans and limits, see our Koinly pricing explained guide.

Step 7: Generate and Download Tax Reports

Once everything looks correct:

• Choose the appropriate plan
• Generate tax reports
• Download accountant-ready files

Reports typically include:

• Capital gains summaries
• Income reports
• Transaction histories

These can be submitted to your accountant or tax authority, depending on your country.

Common Mistakes to Avoid When Using Koinly

• Importing only one exchange
• Ignoring flagged transactions
• Assuming DeFi equals one transaction
• Paying before reviewing data

Taking time during the review stage prevents most issues later.

Is Koinly Suitable for Beginners?

Yes — provided you:

• Import all data
• Review transactions carefully
• Don’t rush the process

Koinly is beginner-friendly, but crypto taxes themselves are complex. The software simplifies the work, not the responsibility.

Final Thoughts: How to Use Koinly Correctly

Using Koinly correctly is less about clicking buttons and more about reviewing your data thoughtfully.

If you want a reliable way to track crypto taxes without spreadsheets, you can start using Koinly for free, import your transactions, and decide later whether upgrading makes sense for you.

Want the Full Picture?

• Read our Koinly review for a complete evaluation
• See Koinly pricing explained to understand plan limits
• Review Is Koinly accurate if reliability is your main concern