Crypto portfolio management software aims to help its users foresee their tax liability for managing the volatility of crypto assets and execute cost effective transactions. Tax software helps assess net tax liability in a timely manner with the help of cryptocurrency portfolio management. It was created as an improvement on crypto tax preparation services which were commonly used by investors to track their capital gains and losses. The portfolio management tool helps simplify the work done by investors while dealing with capital gains and losses. It calculated total gains and losses based on the percentage of each crypto asset invested as a percentage of a single crypto asset which made it easier for investors to track each investment without having to keep a balance sheet every time they trade from one cryptocurrency to another.
1. Set up a comprehensive coin collection with the help of tax software
Cryptocurrency portfolio management and tax software provides an overview of the current market value of your entire digital currency portfolio. This can be used to determine the market capitalization and investment growth potential in comparison to other coins. Tax reporting tools enable you to track the historical growth rate and market capitalization of each coin while updating real time data. Tax software allows you to make predictions about the sales price of a coin and calculate your profit and loss on an ongoing basis.
3. Calculate the net tax liability from cryptocurrency portfolio management
Net tax liability allows you to invest in crypto assets and still make a profit after paying your income taxes for that year. Profit is calculated on the basis of coin collection growth, market capitalization and investment value in comparison to the average calculated profit of all coins. Tax packages help investors to make decisions based on real time data that can be used to calculate gains and losses while investing in cryptocurrencies.
4. Track the total gains and losses made in fiat and crypto currencies
Tax packages track the total gains and losses made in fiat currency while investing in cryptocurrencies. The tax software tracks the progress of the cryptocurrency tax while calculating the gains and losses using crypto portfolio management tools. This helps investors to understand their overall financial situation at the end of each month or quarter by adding up all their investments to see how much is left for income taxes.
5. Calculate tax liability from cryptocurrency portfolio management
Crypto portfolio management software helps calculate the straight forward tax fair market value of your digital assets. Tax software can be used to calculate net tax liability for investors and their spouses for the current year in comparison to the previous year. The software is updated based on coin collection growth, market capitalization and investment value in comparison to the average calculated profit of all coins.
Binocs is a crypto portfolio management and tax software, designed to assist users in calculating the net tax liability of their crypto portfolio. The software is designed to help users track the price growth of their capital gains tax crypto from the date of investment. Users can view their portfolio volatility over a period of time and in real time.
