Why do you need a crypto tax calculator?


I just read an article about the crypto tax calculator. The author of the article helped his Australian friend to buy some cryptocurrencies, particularly Cardano and Ripple. While some people live in one of a handful of jurisdictions where capital gains are not taxed, the others might have big difficulties by calculating their profits or losses from investment into cryptocurrencies.

The article looks at the difficulties in producing tax reports when trading in crypto:

Challenge #1. Work out what category of tax you fall into
Challenge #2. Gather all your trading records in one place
Challenge #3. Coin hopping

There are basically two ways of calculation. You can do it manually, by hand, this might be ok for a few trades, but if you are an active investor or trader this will require either a lot of time or a lot of money to hire an accountant.

The second way is to use the crypto tax calculator for anything more than that. The article comes to the conclusion that this way is better if you want to be both tax compliant and ensure that you don't pay too much tax.


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