Blockchain And Cryptocurrency Provider

Using CoinTracking Tool for Crypto Audits

Using CoinTracking Tool for Crypto Audits

Table of Contents

Introduction

CoinTracking is a cryptocurrency tax reporting tool and portfolio manager/tracker. It’s one of the first and most well-known crypto tracking tools on the market and has been around since 2012. The tool can be used to connect to cryptocurrency exchanges and wallets via API and report on historic trade and balance information. Many individual traders use the tool for monitoring and tax reporting purposes, but it’s also a handy tool for auditors. In this short guide we’re going to run through the process using the tool to audit a client’s digital asset positions.

CoinTracking

Adding Client Accounts

There are 4 different account types available from Free right up to “Unlimited” depending on your requirements. The unlimited account costs €45.99 a month and is billed annually. You can initially create a free account by simply signing up and then later if you need additional features you can upgrade your account. A great feature for auditors is the ability to link multiple accounts together and use the admin account to view all linked sub-accounts from one place. The account settings allow adding up to 10 user accounts.

If you are auditing multiple clients then these can easily be set up as different sub-accounts which allows you to audit them separately.  The admin user can switch between the different accounts at the top right of the screen by selecting SWITCH USER.

Adding Client Accounts

You can then go into the individual client accounts to begin importing the client’s trade history from the exchanges that they use. This can be done using the API or manually uploading from a CSV file. Below are the steps to perform both.

Request API Keys

In order to automatically connect to the exchange or wallets and import the transactions, you can use the API import option. You’ll first need to request for the client to provide read-only API keys for each exchange they use. Ensure the client understands API security (this is explained in a section below).

Each exchange platform and wallet require slightly different steps for generating new API keys. Steps for each exchange can be found in CoinTracking if you select Enter Coins -> Exchange imports (API) and choose the particular exchange used by the client.

For example, for FTX exchange:

  1. Log in into your FTX or FTX.US account and go to ‘profile’: https://ftx.com/profile or https://ftx.us/profile
  2. Scroll down to API Keys section
  3. Press CREATE READ-ONLY API KEY
  4. Copy your API Key and API Secret
  5. If you want to import only transactions from one of your subaccounts, input its name into the “Sub-Account Name (optional)” field and disable the “All subaccounts” slider below
  6. Your trades will import automatically

Connecting to the Exchange or Wallet API

Once you have the API keys, you’ll need to make the connection in CoinTracking by following these simple steps:

1 . Log in to the CoinTracking App and Select Enter Coins -> Exchange Imports (API) and choose the exchange you wish to connect to.

CoinTracking - Exchange Imports(API)

2. Create a new API job by entering the API Key and API Secret provided by the client.

Coin Tracking - Create API JOB

3 . Add a Label to allow grouping if required. For example, [CLIENT NAME] + [Exchange name].

4. Click on Save this Job to begin the import

CoinTracking Save Job

5. The job is running in the background. You can check the current status of all API connections using the API live data check: https://cointracking.info/import/balance/

6. Once the job completes, go back to the Dashboard and the charts are now available with data populated.

CoinTracking Dashboard

Confirming Balances

Select the Daily Balance report. This report shows the value and the amount of all your client cryptocurrencies grouped by day. You can then filter by Day to get the balance at year-end for example or within a set trading timeframe. You can also select the Balance by Exchange report to see the balance held on individual exchanges if the client uses multiple exchanges to invest. The balances confirmed in CoinTracking can then be compared against the balances reported in the client end of year position reports. You can also confirm the unrealized and realized gains for each cryptocurrency.

API Security

In order to ensure the client is aware of the API security best practices so that they don’t put their funds at risk, you should consider the following:

  1. When creating a new API key, always assign only the permissions that are required. We strongly recommend using just Read-Only Keys. When generating the keys you can select the required permissions. Do not give trade or withdraw permissions.
  2. Use this key only for this CoinTracking account. Using one key for multiple services will always result in errors.
  3. Never share your keys with services or people you don’t trust.
  4. Whitelisting: Some exchanges use IP Whitelisting when creating keys for added security. The three Cointcacking IPs that need to be whitelisted are:

    1. 63.32.3.10
    2. 63.32.21.240
    3. 34.254.117.125

    More information on whitelisting here.

Manually Uploading CSV Files

Some exchanges are not able to provide API keys or they may have limited history available through the API. In this case, you can request that CSV files are downloaded from the exchange account and imported manually to the tool. To do this use the following steps in the Cointracking App; Go to Enter Coins -> Exchange Imports (CSV). Import the CSV file that the client has provided.

CoinTracking Manually Uploading CSV Files
Note: for some exchanges the CSV and API data is not compatible.

Conclusion

With many new cryptocurrencies, tokens and platforms emerging it has become increasingly more complicated to track and report on portfolios. CoinTracking is one of the best tools on the market that lets you bring it all together in one place. It has support for most exchanges and wallets and has become one of the leading crypto tracker tools on the market for a reason.

Boinnex works with accountants and auditors to help them navigate the new and evolving crypto ecosystem. If you have any questions or would like to discuss our crypto consulting services then get in contact with us through info@boinnex.com.

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Bryan

Bryan

Based in Ireland, Bryan is the founder and CEO of Boinnex. He has worked for almost a decade as an IT Project Manager contracting across finance, banking, insurance, tech, and healthcare industries. He found his way into the crypto space in 2017 when he started a contract role with IOHK — the dev company behind the Cardano blockchain. Since then, he has continued to be actively involved in different projects in the crypto and blockchain space. He enjoys learning, writing, and sharing knowledge about all things crypto.

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