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Comparing the BEST Cryptocurrency tax software [Updated for 2020]

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Best Crypto tax software

Looking at the best cryptocurrency tax software

Last updated: March 2020 (Koinly has been added to the list)

Cryptocurrency based income is not tax-free. The court granted IRS authority to serve summons to Coinbase to gather its customer information for transactions that took place from 2013 to 2015. This was a John Doe summons which means – IRS does not have to identify specific customers, it only has to identify the conditions and Coinbase will have to dish out information related to customers who fit in that group.

The condition laid out in the summons indicates “with at least the equivalent of $20,000 in any one transaction type (buy, sell, send, or receive) in any one year during the 2013—2015 period”.

A Cryptocurrency tax software will help you manage and file your taxes thus reducing your burden. Before we get on with our Best Cryptocurrency Tax Software picks for 2020, let’s quickly examine all the things that took place in 2019 (and we haven’t even finished the year yet).

All these developments indicate one thing:  taxpayers with cryptocurrency transactions can no longer hide under a rock and hope for the best. YOU NEED TO PAY CRYPTO TAXES. A crypto tax software will help you streamline your taxes and file them.

All of these transactions trigger a taxable event

Many taxpayers who have received the IRS tax letter were surprised. Taxpayers who assumed that crypto to crypto transactions were outside the purview of the IRS capital gains tax were among those who were served these letters.    

All of the below transactions trigger a tax event:

  • Selling or exchanging cryptocurrency for another cryptocurrency (or for FIAT)
  • Buying goods or services using cryptocurrency
  • Cryptocurrency received through a hard fork creates a tax event
  • Cryptocurrency received through airdrops creates a tax event
  • Receiving wages in cryptocurrency is a taxable event
  • Receiving rental income, royalties, tips, commissions, or any type of income received in cryptocurrency is a taxable event
  • Any exchange of value using cryptocurrency instead of fiat creates same taxable event as if fiat was used

Do you need a cryptocurrency software?

do we need to pay crypto taxesIf all of your cryptocurrency transactions were in one or two exchanges, like Coinbase, that provides clean tax documents with all your transactions, then you may not need a crypto tax software.

However, trouble creeps in when you have:

  • transactions over multiple exchanges
  • movement of crypto funds from one exchange to another
  • received hard forks
  • traded extensively in cryptocurrencies during the year
  • moved funds from wallet to exchange or vice-versa 

We have observed that whenever you have transactions in more than one crypto exchange, it is a big time saver to use crypto tax software.

Problem with the information available on exchanges

Even those who want to be compliant face a bigger issue. How does one track 100s (and in some cases 10s of 1000s) of transactions without losing their mind?

Few exchanges, like Binance, do not show history beyond 90 days, few do not let you download information in any meaningful format, some do not comply with tax rules, some do not capture transaction fees and each exchange has some or other limitation.

How do you track your transactions in the midst of these hurdles?

Thankfully, there are many crypto tax software solutions available in the market that address these issues. Before we compare them side-by-side, let us look at different features that you need to look at before picking the right tax software that fits your needs.

Also Read:

Every US taxpayer in Crypto should be aware of what’s unfolding

All you need to know about the Crypto Taxes in 2019

Top 5 Best Practices for Filing Crypto tax Returns 

Key attributes to look for in your cryptocurrency tax software

For the purpose of our comparison, we will be looking at the following aspects for each crypto tax software and then we will compare them against each other.

  • Exchanges supported and wallet imports: If you have dealt with multiple exchanges and wallets during the year, you want to make sure that the crypto tax software that you pick has the best coverage, even if this means you have to shell out a few extra $$s.  Trust us, from our own experience we can say, it is worth the peace knowing that the software does the job for you.
  • Tax computation methods: First In First Out (FIFO) or Last In First Out (LIFO) are the most popular tax methods in the US with FIFO considered most conservative.  There is also another option to identify specific coins for specific transactions but that requires meticulous documentation. Most crypto tax softwares support FIFO and LIFO along with other methods that may be used by other countries.   Make sure you consult a tax professional to ensure you are picking the right tax method for you and the one that is allowed by the tax authorities.
  • Tax forms support:  The IRS requires taxpayers to differentiate between their short-term and long term capital gains. These are reported on different sections of the Form 8949. Crypto tax software that can sort the information on the proper forms is the one you want to use. Also, some crypto tax software facilitate the direct import of these transactions to tax platforms like TurboTax.  
  • Pricing options: Bear market has killed a million dreams in the crypto space. Last thing people want is to shell out too much dough on buying a tax software. However, as much as it is important to keep track of your gains, it is equally important to keep track of your losses so you can offset them on a future gain. Best crypto tax software for your situation will depend on how many exchanges you have used, number of transactions, losses you have incurred during the year, scams you have endured and many such factors. 
  • FBAR support:  The US Treasury has confirmed that foreign cryptocurrency exchanges need not be disclosed under the Foreign Bank Account Reporting (FBAR) regulations on FinCEN Form 114.  However, there is a catch regarding having transferred any fiat during the calendar year to any foreign crypto exchange that could trigger a FBAR filing requirement.
  • Customer support:  You also want to pick the crypto tax software that responds to your needs in case you run into any trouble. 

Having looked at the key attributes, let’s look at popular crypto tax softwares on the market:

Following review is an opinion. We presented the criteria that we would personally look for in a crypto tax software based on our needs. Your needs may be different. We have not used all of these software, and where applicable, we have formed opinions based on information available publicly. We may be compensated for the referral links, no other financial arrangement exist between these companies and us.

Cointracking.info

Cointracking for crypto taxIn our opinion, Cointracking continues to be one of the most popular crypto tax software. It offers most number of tax computation methods in the market.  It can get easily overwhelming to see the number of options available, however, not all options are relevant to the US and being a global crypto tax software tool – making these options available is important for other jurisdictions.  

From a mere updates and staying ahead perspective, Cointracking has no rival in our opinion.  For instance, Cointracking already has the ability to support Binance US, supports Kraken’s credit transactions, and much more.  However most taxpayers may not need as savvy a product as Cointracking if they only dealt with one or two exchanges and have few transactions. 

Exchanges supported and wallet imports: Cointracking probably has one of the most comprehensive list of exchanges and wallet imports. It supports almost all exchanges and wallets, including hard wallet imports from Trezor.

Tax Computation methods: Cointracking supports FIFO, LIFO, Adjusted Cost base (Canada), HMRC (UK only) along with eight other methods, totalling to 12 methods. For US tax purposes, the most common methods used are FIFO and LIFO.

Tax Forms support: Cointracking generates multiple tax reports for you to use depending on your need, including, 8949 PDF, 8949 CSV download, excel & PDF download of transactions itself, etc., In addition, Cointracking has direct export option to export data to TaxACT, TurboTax and Drake tax software.

Pricing options: Cointracking offers multiple price options depending on your needs. For instance, if you have less than 200 transactions, you can use their FREE option.  If you have less than 3500 transactions, their PRO version that costs $118 for 1 year, $201 for 2 years and $369 for lifetime.  For traders with transactions exceeding 3500, an unlimited version is available that costs: $251 for 1 year, $402 for 2 years and $2837 for lifetime;  Most unique feature about Cointracking is that you can pay the fees with 50 different altcoins in addition to PayPal, credit cards, wire transfers, etc.,  Users who pay the fees using Bitcoin receive a 5% discount (talk about facilitating adoption!).

Cointracking.info   
PlanDurationTransactions SupportedCost in USD*
Pro1 Year3500$118
Pro2 Years3500$201
ProLifetime3500$369
Unlimited1 YearUnlimited$251
Unlimited2 YearsUnlimited$402
UnlimitedLifetimeUnlimited$2837

*As of October, 2019

FBAR support: Cointracking does not offer FBAR support. However, if you have never transferred FIAT into a non-US crypto exchange, you may not have an FBAR reporting requirement, as clarified by the FinCEN

Customer support: You can quickly raise a support ticket on Cointracking portal.  We are not sure how we feel about the customer support with Cointracking.  They don’t list a phone number and since its a ‘reporting’ tool, there is no real need for an ‘emergency’ line, so it may not be a big deal in our opinion. Rating: OK.

  • Lifetime plans make this unique offering
  • Price options that fit most needs
  • Comprehensive solution
  • Multiple tax calculation methods that meet multiple jurisdiction requirements

  • No FBAR support
  • Customer support connectivity is not as good as other platforms

Also Read: How to use Cointracking to calculate your crypto taxes – A Complete guide for beginners

CryptoTrader.Tax

Cryptotrader taxCryptoTrader is our new favorite only next to Cointracking. Their import functionality is simple and the system is built carefully with customer experience in mind.  System walks you through the simple 6 step process to help you import data from various exchanges.

CryptoTrader also publishes guides on various aspects of cryptocurrency taxes.

Their customer care is amazing. They check in on you after you sign up and take your feedback seriously.

One of the unique features of CryptoTrader is that it helps you go back to previous tax years to pull information if you are looking to amend your previous year tax returns to report crypto transactions.

We had the unique opportunity to talk to David Kemmerer, CEO of CryptoTrader.Tax, about their platform.  In his own words, CryptoTrader.Tax is simply the most accurate crypto tax calculator on the market. This is a direct result of the years that we’ve spent developing our historical pricing engine. It puts us far ahead of the competition, and our users notice.” 

If we were to choose between Cointracking and CryptoTrader for customer support alone – we would pick CryptoTrader. And if you have less than 1500 transactions during the year – CryptoTrader is a clear winner from the price point, in our opinion.

  • Exchanges supported and wallet imports: CryptoTrader supports a lot of exchanges and where a crypto exchange is not supported, they allow CSV imports, so you are covered even if a direct API import is not available. They support over 35 leading Exchanges (and for the exchanges that they do not have native support, you can manually upload the CSV template) and almost all wallets.
  • Tax computation methods: They support LIFO and FIFO methodology. They also support Adjusted Basis method for Canada taxpayers.
  • Tax forms support: CryptoTrader supports 8949 functionality for the US taxpayers and it also has TurboTax Integration on all its plans.  1 year money-back guarantee they offer shows the confidence they have in their product.
  • Pricing options: From a price point of view, Cointracking and CryptoTrader are in similar ball park when it comes to its Unlimited transactions plan.  For taxpayers with less than 1500 transactions, CryptoTrader is a no-brainer, in our opinion.

Cryptotrader.tax   
PlanDurationTransactions SupportedCost in USD*
Hobbyist1 Tax Year100$49
Pro Trader1 Tax Year1500$99
High Volume Trader1 Tax Year5000$199
Unlimited1 Tax YearUnlimited$299

*As of October, 2019

  • FBAR support: CryptoTrader does not offer FBAR support. However, if you have never transferred FIAT into a non-US crypto exchange, you may not have an FBAR reporting requirement, as clarified by the FinCEN.
  • Customer support:  The team responds to questions quickly.  They even check-in to see how you are doing during the early days of subscription.  Messages on the chat window on their website get answered in under 5 minutes (we tested this on a weekend, and still got a response). Rating: Excellent.

  • Excellent customer care
  • Simple to use solution
  • Their unlimited pricing option is on par with CoinTracking.info
  • 1 year money back guarantee

  • No FBAR support
  • Not as comprehensive Exchange API list as other solutions

Cointracker.io

Cointracker for crypto taxesOver 10 BILLION in transaction volume has been tracked on Cointracker. They boast a massive $200 Million losses claimed through their platform. 

Unlike other tools on this list, Cointracker made it easy to access the data from the exchanges. We tried to connect Coinbase account and instead of asking for API and other complex process, it simply asked us to login to Coinbase account and that’s it. Definitely easier way to connect exchanges to the account.

Cointracker also provides PREVIEW TAX IMPACT feature where you can check the tax impact before you execute a transaction.  

They are working on integration of non-crypto accounts to the platform and provides tax loss harvesting and dollar cost averaging features.

  • Exchanges supported and wallet importsCointracker helps you sync with over 300 exchanges and supports many wallets including hard wallets like Trezor and Ledger. Cointracker supports over 2500 cryptocurrencies. When we tried to connect Coinbase.
  • Tax computation methods: Cointracker offers FIFO, LIFO, HIFO, Adjusted Cost Basis, Share pool methods to calculate capital gains.
  • Tax forms support: Cointracker supports Form 8949 reporting as well Sch D. In addition, TaxAct and TurboTax exports are available as well. 
  • Pricing options: Pricing ranges from $49 to $999. They do not have an unlimited plan.

Cointracker.io   
PlanDurationTransactions SupportedCost in USD*
Hobbyist1 Tax Year100$49
Trader1 Tax Year1500$199
Pro1 Tax Year5000$499
Satoshi1 Tax Year15000$999

*As of October, 2019

  • FBAR support: Cointracker offers FBAR/FATCA support.
  • Customer support:  They have a chat widget on their portal and promise to respond within a day.  We did not find a direct customer care line on the main site or inside the login area. Rating: OK.

  • Experience of over 10 Billion in transaction volume
  • Over 300 exchanges supported

  • No immediate customer support
  • Pricing options are bit expensive, in our opinion

Bitcoin.Tax

Bitcoin taxBitcoin Tax is what big things come in small packages.  It is a simple, almost archaic, interface. Offers affordable pricing options for individuals with simple transactions.

  • Exchanges supported and wallet imports: Bitcoin.Tax offers support for over 20 exchanges, with the option of uploading data from any exchange using a CSV format.
  • Tax computation methods: Bitcoin.Tax offers FIFO, LIFO, average cost methods to calculate capital gains.
  • Tax forms support: Forms 8949, 8824 are supported in addition to direct import to TurboTax and TaxAct.

Pricing options: For individuals, price starts at $29.95 and for traders price starts at $99.

Bitcoin.tax   
PlanDurationTransactions SupportedCost in USD*
Individual1 Tax Year10,000$29 to $49
Trader1 Tax Year1,000,000$99 to $399

*as of October 2019

  • FBAR support: No FBAR support on the platform.
  • Customer support:  Bitcoin.Tax has FAQs listed on their website and if the question you are looking for is not answered, they give you an option to email them which they revert back within 2 business days.

  •  Simple interface
  •  Great option for people with fewer transactions
  •  Budget solution

  •  Heavy reliance on CSV imports
  •  Customer care is not one of the best (compared to others on this list), in our opinion.

Koinly.io

Koinly Tax SoftwarePerfect for new and experienced investors alike, Koinly offers extensive support without complicating the reporting process. Offering coverage in over 20 countries, support for thousands of listed cryptocurrencies, and portfolio tracking capabilities, Koinly is one of the best crypto tax tools to turn to when tax season rolls around and you need to get your taxes done quickly and efficiently.

Exchanges supported and wallet imports: No matter which cryptocurrencies you deal with or exchanges you use, Koinly has you covered. With support for over 300 exchanges, 10 blockchains, and over 6,000 cryptocurrency assets (not to mention the ability to easily import data through API keys, public keys, and CSV files), there’s nothing stopping you from reporting. The platform even supports margin trading!

Tax Computation methods: As stated on their website, Koinly supports all countries that utilize FIFO, LIFO, and Average Cost accounting methods. They also offer support for countries that aren’t listed directly on their website (although users will have to contact them directly to learn more about coverage in their country). 

Tax Forms support: Koinly offers downloads for Form 8949, Schedule D, K4, and FBAR, with the website suggesting that they offer more forms than those listed publicly. Additionally, Koinly supports exports to major tax software providers like TurboTax, TaxAct, and Xero. 

Pricing options: Koinly has three main pricing structures (with the ability to create a custom solution if need be). The first is the Hodler plan, which costs $79 per year and allows individuals to import up to 300 transactions and receive the basic features of the platform (income and capital gains report, tax report for any year, all exchanges and wallets import capabilities, etc.). The second is the Trader plan, which costs $179 per year, offers support for up to 3,000 transactions, and includes priority support. The final plan listed on their website is the Oracle plan, which costs $399 per year, offers support for up to 10,000 transactions, and review and import assistance as well as early access to new features. It’s important to note that Koinly is free until you need to download your report. After which, you will purchase one of the plans listed above.

Koinly.io      
Plan Duration Transactions Supported Cost in USD*
Oracle 1 Year 10,000 $399
Trader 1 Year 3,000 $179
Hodler 1 Year 300 $79

*As of February 2020

FBAR support: As we stated in the “Tax Forms support” section, Koinly offers FBAR support, amongst other forms of support that you may not see on similar tax platforms.

Customer support: Koinly offers two contact methods: live chat and email. Both are sufficient given the fact that their tool is simple to use and that users who purchase the two most expensive plans receive priority support and other forms of assistance. Overall, customer support leaves little to be desired. 

  • Margin and futures support for Binance, Bitfinex and others
  • Affordable plans for all kinds of users (with the option for custom plan building)
  • Extensive coverage across hundreds of countries
  • Easy import for thousands of assets and hundreds of exchanges
  • Comprehensive tax preparation for multiple jurisdictions
  • Easy to use platform with portfolio tracking capabilities
  • Free trial until you download your forms

  • Koinly doesn’t support Uniswap and Kyber transactions atm so you have to do some manual work to get these in correctly. The team did assure us that this will be added in 2020.

TokenTax.co

Tokentax for cryptocurrencyTokenTax offers a crypto only as well as fully assisted service models.  Within the fully supported service model, users can take the help of the tax accountants who can help with tax returns including crypto transactions.

Exchanges supported and wallet imports: Token Tax boasts support to a massive list (over 260) of crypto exchanges and where an API is not supported, they have the CSV upload option.

Tax computation methods: According to this demo video, TokenTax supports 4 types of tax methods: FIFO, LIFO, Minimization and Average Cost.

Tax forms support: Form 8949 is supported and Direct export to TurboTax is available as well.

Pricing options: Price depends on whether you choose a self serve model or CPA assisted model.  The price range starts from $65 and goes up to $1999. The gold option includes IRS audit assistance.

Tokentax.co   
PlanDurationTransactions SupportedCost in USD*
Basic1 Tax Year500$65
Premium1 Tax Year3000$199
VIP (CPA Assisted)1 Tax Year20000$1499
Bronze
(Full tax filing)
1 Tax Year3000$499
Silver
(Full tax filing)
1 Tax Year3000$999
Gold
(Full tax filing)
1 Tax Year20000$1999

*as of October 2019

  • FBAR support: TokenTax offers FBAR assistance, for the basic and premium plans there is an additional charge of $50, other plans carry unlimited FBAR support.
  • Customer support:  Probably the only site that actually lists a phone number on the website and their chat boasts to answer messages in under 5 minutes. Rating: Excellent.

  • CPA assistance available
  • IRS audit assistance in premium plans
  • Customer care that includes chat and phone options

  • Pricing options are bit expensive, in our opinion
  • No unlimited transaction plans

ZenLedger.io

zenledger for cryptotaxDemand for ZenLedger has soared compared to last year. Teeka Tiwari, one of the most popular figures in the crypto space, recommended ZenLedger to his followers. That may have something to do with the shift in price tiers at ZenLedger.

The tool offers a full range of support from audit report to calculating crypto income to mining/donation capture, ICO/Airdrops support, Tax Loss Harvesting (tracking losses in crypto and offsetting them against regular stock trades, and loss carry forward).

ZenLedger also supports FinCEN/FBAR alert.

Exchanges supported and wallet imports: ZenLedger has focused on US taxpayers from the get go.  Their list of exchanges may not be as impressive as Cointracking or TokenTax but most taxpayers do not deal with as many exchanges, and ZenLedger does cover major ones.  For the ones that they don’t cover, they offer CSV upload.

Tax computation methods: FIFO and LIFO are the methods that are available, however, they may consider adding specific identification once the rules are clarified by the IRS.

Tax forms support: Zenledger offers 8948, Sch D and FBAR/FinCEN support through their platform.

Pricing options: ZenLedger has picked up a lot of buzz.  This becomes evident from their change in fees structure.  Last year, they had 3 pricing plans and one of them was FREE.  They no longer offer free plan and now have 4 tiers.

Zenledger.io   
PlanDurationTransactions SupportedCost in USD*
Starter1 Tax Year500 

($50K total asset value)
$149
Premium1 Tax Year1000

($300K total asset value)
$399
Executive1 Tax Year4000 

($1M total asset value)
$799
Unlimited1 Tax YearUnlimited$999
 

  • FBAR support:  ZenLedger was among the first ones to provide FBAR/FinCEN alerts. They continue to support the FinCEN alerts in their tool.
  • Customer support:  Like TokenTax, ZenLedger has chat option that promises to reply in under 5 minutes.  We tested this and Pat Larsen, CEO, answered our question on the chat.  They don’t have a customer support number but there is an email to reach out to the team. Rating: Excellent.

  • ICO/Airdrop Assistance and Tax Loss harvesting features
  • US focused
  • Easy to reach customer support

  • Limits on number of transactions and asset value

Which crypto tax software to pick based on price?

In our opinion, if price and value is a factor – then Cointracking.info and CryptoTrader.tax emerge as clear choices. 

Under 200 transactions CoinTracking at $0

Upto 3500 transactions: CoinTracking at $118 for 1 year ($369 for lifetime)

Unlimited transactions: CoinTracking at $251 for 1 year ($2837 for lifetime) 

Unlimited Transactions, excellent customer care and competitive pricing: CryptoTrader.Tax at $299

Which crypto tax software to pick based on complexity & price?

COMPLEX: Taxpayers with multiple exchanges, wallets, and numerous transactions

In our opinion, Cointracking.info and CryptoTrader.Tax still come up at the top purely based on the cost and the tool efficiency. However, TokenTax.co jumps the ranks because of the extensive exchange list and ease of use, not to mention the customer support.  

If you dealt with way too many exchanges that are not supported by Cointracking.info or Cryptotrader.tax, the closest best is TokenTax.co in our opinion.

Also read: How to pick right Crypto Tax advisor to help you.

Please consider using the referral links in this article to avail these discounts:

Cointracking Referral gives you 10% Discount and 5% more if you pay with bitcoin.

Cointracker Referral gives you 10$ Discount

Cryptotrader.tax Referral gives you 10% Discount

Zenledger: Referral gives you 10% Discount

Tokentax: use cryptotapas exclusive discount code “CRYPTOTAPAS” for 10% Discount.

Koinly referral.

Frequently Asked Questions

Q: The solutions at the top of your list do not support FBAR while others do, why then have you ranked them so high?

A: FinCEN recently stated that they are working on the reporting requirements on FBAR for cryptocurrency and in the interim stated crypto exchanges may fall outside the purview of FBAR reporting with one exception: FBAR reporting requirement, as clarified by the FinCEN. FBAR reporting on its own falls outside the income tax return filing process, and this is the reason – we have not slashed the ranking of some of the solutions on this list. 

Q: Have you focused heavily on pricing in assigning these ranks?

A: Yes, because that is what is important for us and so we did consider that as one of the main factors, however, it is not the sole factor as you can see in the review above.

Q: Do you have financial incentive behind these rankings?

A: Where available, we have used the referral links. In most cases, referral links offer discounts to the users which are otherwise not available if you were to visit these platforms directly.  Referral rewards are public information and we do not have any other incentives outside of referral rewards.
Q: Should I rely on your rankings?
A: No. These rankings are based on what is important for us and our opinion of it.  What is important for us may not be as important for you. For example, if you are an American Trader who has multiple foreign exchanges where you have transferred fiat – in that case, FBAR and FATCA reporting may be of utmost importance to you and our number 1 recommendation may or may not suit your needs.  Please consult a professional for your specific needs.

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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6 Massive Benefits of Cryptocurrency

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Benefits of Cryptocurrency

It is normal to be hesitant about using cryptocurrency as the medium of financial transactions. 

There is a school of thought which believes, it is a domain suitable for criminals, fraudsters, and terrorists. Cryptocurrencies allow them to maintain anonymity for discreet transactions and ransomware scams.

However, the increasing acceptance of Bitcoin as a digital currency has initiated a positive perspective around this mode. It brings a distinct set of pros for the users, making them overlook the risks tag along.

According to the Finder, a post on social media surfaces about Bitcoin every three seconds. If we do the math, it means 1203 posts pop up per hour, making it to 20 posts per minute.

A more general view on the crypto landscape speaks of its overall growth, too. Block Social tells us how cryptocurrency exchanges around the globe have exceeded 300 during 2020.

In fact, the success of crypto shows us the loopholes of the traditional banking system. If you, too, want to leap on this bandwagon and aren’t sure about your next move, this is the right place. Our blog sheds light on the positive aspects of cryptocurrency that make it a more established form of financial trade. 

Healthereum

1. Easy transactions

When dealing with brokers or legal representatives, you have to pay the transaction fee from time to time. This comes along with immense paperwork, commission, brokerage charges, and so much more. Using cryptocurrency eliminates the need for a middle man. The transaction changes into a one-to-one affair taking place on a secure network.

No wonder Forbes stated that adopting blockchain technology can save financial organizations around $12 billion yearly. A deduction of extra charges from third parties and reduced operations cost is saving millions for huge organizations.

Moreover, the transactions are transparent, making it easier for you to establish audit trials. There is no more confusion over who pays whom. All parties involved in the transaction know each other quite well. Accountability on each party grows.

2. Asset transfers

A financial analyst rightfully describes cryptocurrency blockchain to be a “large property rights database.” On the one hand, it helps execute and enforce two-party contracts on commodities such as real estate and automobiles. At the same time, it also facilitates special modes of transfer. 

As per Born2Invest, Bitcoin alone is responsible for an average of 350 000 daily transactions on the Blockchain. Meanwhile, Coinbase has 30 million cryptocurrency users (Block Social). The increasing figures of each crypto speak of its acceptance worldwide.

The parties involved in asset transfer can design contracts and add third-party approvals at a later date. It also helps to reference the external facts and gives the parties exclusive governance of their account. It reduces the time and money involved in asset transfers. Perhaps this is why US federal government spending on Blockchain shall reach $123.5 million by 2022.

3. Confidential transactions

Cryptocurrency purchases remain discreet. Unless a user voluntarily publishes his transactions, the purchase is never associated with their identity. In official scenarios, such as when you put your cars for sale, the parties must reveal an association with their cryptocurrencies. It helps to establish trust and relevance.

Within the cash/credit system, your entire transaction history turns into a reference document for the banks/credit agencies involved. On the contrary, cryptocurrency is a transaction that is a unique exchange between two parties. They can negotiate and agree on preferable terms. The information exchange takes place on the “push” basis. This means you transmit only that which you wish to send to the recipient and nothing else.

It keeps your financial history secure and guards you against identity theft. Chances of which are quite high under the traditional transaction system. 

On top of this, the combination of Blockchain with IoT is considered revolutionary by the experts. This has accelerated data exchange, lowering the operation costs, and improved the security of files. Your Tech Diet predicted that 75% of the IoT industry would adopt Blockchain technology by the end of 2020. Lack of exposure is, thus, something the entire industry is looking for.

4. Transaction Fee

You have probably faced hefty monthly account statements from your bank/credit companies. The transaction fee charged at every transaction you have made might leave you shocked. The whopping fee of multiple transactions can take you by surprise at the end of each month.

In the case of cryptocurrency exchange, the data miners receive their share from the cryptocurrency network involved. Transaction fee does not apply as the remote and separate computer systems that do the number-crunching get a pretty fair share. 

According to Investopedia, the Bitcoin reward for miners halves for every 210 000 blocks added to the chain. Nonetheless, this system has freed the transaction parties to pay the fee, making it the most feasible. 

However, there might be some external fee involved if you engage a third-party management service to maintain the crypto wallet. These charges are likely to be quite less than the transaction charges levied by the traditional banking system. 

5. Hold Ownership

The traditional banking system works in a manner where the amount goes to the nominee if a person passes away. The chances of the account closing are quite high when you infringe the terms of their services. Unlike this framework, digital currencies give you the sole ownership of private and public encryption keys. This makes it easier for you to identify the encryption network.

6. High security

Once a party authorizes the cryptocurrency transfer, they cannot reverse it. This is not the case in “charge-back” transactions allowed by the credit companies. Cryptocurrency gives you reliable encryption throughout the transaction process to keep it protected from bugs and malicious entities.

Systems like Binance Smart Chain are enabling people to do more with BTC.

Final Thoughts 

Cryptocurrency is taking the financial world by storm, and we know the reasons why. It is about time you kickstart your digital finances journey and make the most out of it. Who knows what surprises are about to come later in this landscape!

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Cardano or PolkaDot? Which One to Invest In?

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Cardano vs Polkadot

There is a new battle in the crypto space.  Cardano (ADA) and PolkaDot (DOT) maximalists are headbutting as to which project is better and why.

The conversations are intense to say the least and we will try to provide our view on which one we are leaning toward and the reasons why, in this rather short article.

Just to be clear, we are invested in both ADA and DOT so we have a vested interest in both projects, however, we are now asked to pick one over the other and that brings us to this article.

Decentralization

The whole spirit of cryptocurrencies is the concept of decentralization, however, some of the more popular projects don’t seem to have a grasp of what that means.

Diem (previously Libra) or XRP etc., are controlled by a group for validators who could, in theory, easily collude, in our view.

With DOT, things are not as centralized as some other projects with about 1000 validators securing the platform.

However, ADA has the most number of nodes and has most of its circulating supply staked on its wallet. The community behind ADA has biggest proponents of decentralized frameworks.

ADA: 8 (top 10 is reserved for BTC)

DOT: 6

Team

Cardano boasts the maximum number of Ph.Ds on its team and has a more decentralized team structure.  You have teams that are working exclusively on wallet and staking while you have other teams focusing on interoperability. Yet, another team is focused on bridging projects from Ethereum to Cardano.

DOT has the ammunition of Gavin behind it. He is undoubtedly one of the brilliant minds in the space. 

However, as we learned in basic math, sum total is always greater than an individual unit.  This applies more aptly with these projects. In our opinion, Cardano has a greater edge when it comes to collective human capital.

Having Charles Hoskinson helps ADAs impression.

ADA: 8

DOT: 6

Social presence

There is no competition when it comes to social presence and engaging the community when it comes to the leaders of these two projects.

While DOT’s founder Gavin might come out as eccentric and polished in the social media, Charles takes the cake in engaging with his audience and making things sensible for the community.

ADA: 9 

DOT: 7

On a mission

Whenever you hear Charles speak about ADA you will immediately understand that he is on a mission to bring the marvels of blockchain enabled financial services to all corners of the world.

Cardano’s team is now focused on the South Africa continent to bring the under-previleged onto the world commerce through their platform. They are even close to signing a contract with Ethiopia government in 2021.

While DOT is catapulting the entire space forward it just lacks the same charm that comes with a project on a grandiose mission.

ADA: 8

DOT: 6 

Miscellaneous considerations 

Market cap: ADA has $20 Billion market cap while DOT has $19 Billion, as such they are on par with each other when it comes to valuation. The large cap is a stamp of approval from the crypto community.

Price: ADA is at around 60 cents while DOT has been stabilising at $20 at the time of this writing. When the newbies come to the market and they see they cannot afford Bitcoin or Ethereum, they will most likely go after the projects that are under $1. This does not mean DOT is inferior, it is just an edge that low priced tokens have over higher priced projects. It’s just a newbie mindset that drives higher demand during bull runs to lower priced projects.

Inflationary supply

DOT has an inflationary supply model while ADAs supply is capped.

Yes, DOTs supply is far larger than DOT, however, there is no new minting on ADA when compared to DOT.

Mainnet

DOTs technology is operational and is onboarding projects already.  ADA is scheduled to launch its mainnet this month (Feb 2021). ADA has been in works for many years now and if their product matches the hype and the wait – then it may not matter as much that they are late to the party. However, if there are issues with their mainnet – it may not bode well for ADA.

Conclusion: Total score

ADA: 33

DOT: 25

If you are a DOT fan you might think this score is skewed.   If you are an ADA fan you might think it should score perfect points in all fronts.

In fact, there are some areas where DOT is a clear winner like having a functioning platform. ADA, in our opinion, takes the prize with clear fandom, gigantic mission and a total brainiac project. 

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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Best of the Best YouTube Channels to Follow for your Crypto Fix

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Best Crypto Youtubers

There are literally 100s of crypto-experts on YouTube who claim to have cracked the secret code that can make you millions in crypto riches. 

Who should you follow?  

We have followed many YouTubers, subscribing and unsubscribing to avoid the noise and after having been in this space for over 4 years, we have narrowed our favorite crypto YouTube channels to just a few.

In this article, we will show you our favorite YouTubers and what we like about each one of them. 

Overall number 1: Coin Bureau

coin bureau When it comes to deep analysis, composed demeanor and outright professional crypto channel in the entire space, we have not come across anyone better than Guy.  

Not only is he great at the reviews and in depth analysis, if you have followed the channel long enough you will realize that he reviews the gems long before others pick on the momentum.  

He picks solid projects, never shills a shitty project to his followers and is upfront about his views which he backs up with solid research.

This is the best no-shill and no bull crypto channel on YouTube in our view.

Best original content: Chico Crypto

chico crypto review

If you love a bit of quirky, goofy and somewhat out there viewpoints on the crypto space then there is no one better than Tyler at Chico Crypto. 

His investigation stretches the boundaries of research (and sometimes common sense) but he does do a bang up job on every video.  

I am yet to come across a boring video on this channel.  I will admit that his live streams can be a drag sometimes but his followers seem to relish his presence.

You may not like or agree with what Tyler presents on this channel but you will absolutely be floored by the originality.   

Best TA: TIED: Crypto Capital Venture & Tyler S

                         Crypto Capital Venture Tyler S crypto

With under 90K subscribers at the time of this writing, Dan may not be the most popular of the Crypto channels [yet] but his TA analysis is just so easy to follow.

Dan makes it easy for non-technical folks to understand what’s going on in the market in the language of TA.

There are other folks on YouTube who are good at TA but their videos are so obnoxious that they leave you with a massive headache.  

Not Dan’s Crypto Capital Venture channel.   Dan walks you through the markets in such a calm, composed and professional manner that you might start caring about those candles.

We are forced to share the Best Title for crypto TA on YouTube with Tyler S. 

Tyler’s expertise on TAs is quite awesome and he has a funny way of delivering it too.  

Best expertise on the markets: Alessio Rastani

Allesio RastaniIt doesn’t matter if you are just lurking around the crypto markets or if you trade in the traditional markets…Alessio is one of the best guys on YouTube for great insights into the broad market and its impact on Crypto.

While everyone on YouTube (not the people on this list, of course) is either quick to FOMO or FUD, Alessio is just grounded in fundamentals and technicals.

When you are high on FOMO, he can bring you to the ground.

When you are getting buried in FUD, he can lift you up with facts, not false hopium.

Alessio is personable, professional and an honest guy to follow to understand the markets ahead of others.

Best round up of the market: AltCoin Daily

Altcoin DailyWant to stay up-to-date on what’s happening in the crypto space but don’t have time to keep up?  

Fear not. AltCoin Daily got you covered.

This channel is just a gem among the channels that bring crypto market updates in a concise and palatable format.

You can sense the dedication in the way Austin brings the updates and his opinions in front of his audience. No wonder the channel has recently hit over 420K subscribers.

Best humble and honest take: Crazy 4 Cryptos

Crazy 4 crypto

What does Crypto mean to you?

Most people will say ‘Freedom’, yet, most of the YouTubers we see on the Tube will be broadcasting from their bedrooms or backyards (nothing wrong with that) but not Dave.

He has been in Thailand and streams his videos directly from the beach.

You will immediately connect with his simpleton style and honest reviews.  

He has been touting about Theta when it was trading in cents and now those who followed him are very happy.

Besides Theta, Dave talks about a lot of topics in terms of storing your coins, being careful with people and how to have a long-term plan in space.

Honorable mentions

Team Underground (TA)

We had too many channels to weed out for the TA category and that is why we had to pick two winners, however, Team Underground is a channel we cannot skip.

This underdog channel has been more right about the calls than any other mainstream channel. If you like your TAs and technical side of crypto – be sure to check this channel out.

BitBoy

People either love him or hate him.  There is no middle ground when it comes to BitBoy.  

Personally, we have to weed out a lot of noise while browsing through his channel since he picks a new project every few days (or weeks) and can become overwhelming. 

However, the fresh content is worth the watch.

EllioTraders

The guy behind this channel is truly vested in the space. So much so that he recently launched his own crypto project.

It’s definitely refreshing to see the YouTuber taking his expertise into a live project.  

The reason we did not list this channel on the BEST list is because of the constant feed of projects he pitches that is a bit overbearing for our taste.  

Nevertheless, a great channel and great recommendations.

Conclusion

There are 100s of YouTube channels out there but not everyone is worth your attention. We hope you found some channels of interest through this article.

Note: if we missed any gem of a channel, please let us know and we will be more than happy to add it after review.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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