In the rapidly evolving digital world, digital currencies are bridging continents and countries and effectively solving cross-border payment challenges. Despite the growing adoption, the complexities of regulations and tax compliance remain a hurdle.
Against this backdrop, several entrepreneurs and VCs are backing solution enablers focused on crafting effective crypto tax and portfolio management tools, with Blockpit standing out among them.
Today, we delve into a detailed review of Blockpit, exploring its features, offerings, and other useful information.
What is Blockpit?
Blockpit is a web and mobile platform designed to automate cryptocurrency tax filing and portfolio management. It simplifies the process by connecting to various cryptocurrency exchanges through APIs. This includes popular platforms like Kraken, Bitpanda, Coinbase, Binance, and many others.
The tool aims to provide a user-friendly experience by allowing customers to consolidate all their crypto activity into a single dashboard.
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It includes transactions across exchanges and wallets, mining rewards, and even airdrops. With a holistic view of their crypto holdings, users can gain valuable insights into their portfolio performance.
The company was founded on August 28, 2017, by Florian Wimmer, Gerd Karlhuber, and Gert Weidinger, along with a team of entrepreneurs with expertise in finance and technology. Notably, Blockpit is a Big4 Certified crypto tax firm in Europe.
Key Features of Blockpit?
Automated Crypto Tax Filing
Blockpit integrates with over 250 cryptocurrency exchanges and wallets via APIs or manual CSV uploads. This streamlines tax calculations by automatically importing transaction data.
For instance, if you use popular exchanges like Kraken, Bitpanda, Coinbase, or Binance, Blockpit can directly import your trade history, eliminating the need for manual entry.
Comprehensive Portfolio Management
The app offers a centralized dashboard to track all your crypto activity across various sources. It includes transactions on different exchanges and wallets, mining rewards you've earned, and even airdrops you've received. Users can gain valuable insights into their portfolio performance.
Support for Multiple Assets
This crypto tax solution increases support for a vast number of cryptocurrencies and tokens, exceeding 250,000, according to their website. It ensures compatibility with the majority of cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and niche tokens you might hold.
Tax Optimization Features
Blockpit has more functionalities beyond basic tax reports. It offers functionalities like tax loss harvesting, a strategy where you can sell crypto assets at a loss to offset capital gains and potentially reduce your tax burden.
NFT Support
Blockpit caters to the growing NFT market by offering dedicated features for managing and tracking your Non-Fungible Tokens (NFTs), including a user-friendly NFT gallery and price tracking for your prized collections.
Mobile Accessibility
The innovative service offers a mobile app alongside its web platform. It allows you to manage your crypto portfolio and track taxes conveniently on the go, providing flexibility for busy users.
How Does Blockpit Work?
Data Ingestion
Blockpit offers you flexibility in how you get your crypto data. You can connect your cryptocurrency exchanges and wallets (think Coinbase or Binance) through APIs. Such seamless integration allows for the automatic import of your transaction history, saving you time and effort.
Alternatively, if you prefer more manual control, you can upload CSV files containing your transaction data. Blockpit also allows you to manually add any missing transactions directly within the platform.
Centralized Portfolio View
Once your data is collected, Blockpit shines by providing a comprehensive dashboard. This dashboard acts as your one-stop shop for viewing all your crypto holdings across different platforms.
No more jumping between exchanges and wallets! You can see everything in one place, along with valuable performance metrics. These metrics include your total portfolio value, any gains or losses you've incurred, and individual breakdowns of each asset you hold.
Tax Reporting (Paid Feature)
While the free plan focuses on portfolio tracking, Blockpit offers tiered paid plans if you need to generate tax reports. These plans cater to different transaction volumes and reporting needs, such as generating reports duly designed for various tax regulations.
It is recommended to consult with an experienced tax professional for personalized advice in your specific jurisdiction Once custom reports get generated, you can easily export them in various formats, making it smooth for various needs.
Setup Steps of Blockpit
- Sign Up: Go to Blockpit's website and create a free account.
- Connect Your Accounts: Link your crypto exchanges and wallets, such as Coinbase and Binance, through APIs or CSV uploads in the "Integrations" section.
- Add Manual Transactions: Click "Transactions" then "Add Transaction" to enter details manually.
- Review & Edit Transactions: Review imported transactions for errors. Edit them within "Transactions" to ensure everything is correct.
- Explore Your Portfolio: The dashboard displays all your holdings across platforms. You can track performance metrics and gain portfolio insights easily.
- Export Reports (Optional): Download your tax reports (PDF, CSV) from "Reports" for filing or sharing with your tax advisor.
Blockpit Pricing Plan
Unlike other crypto tax reporting platforms, Blockpit offers licenses per tax season instead of monthly fees.
Free Plan
The basic one is free, and it's perfect for casual crypto holders with minimal transactions. You can track your holdings across platforms and monitor general portfolio performance but with a limited transaction import capacity.
Lite Plan
For occasional investors with a moderate number of transactions (up to 50), the Lite Plan, priced at $49/year, offers everything in the Free tier, plus unlimited transaction import and basic tax reports for a single tax year.
Basic Plan
Suppose you're an active trader with a significant number of transactions (up to 1,000). In that case, the Basic Plan at $109/year steps it up with tax optimization features (availability may vary by region) on top of Lite Plan benefits. This plan also lets you generate tax reports for a single tax year.
Pro Plan
For frequent traders with a high volume of transactions (up to 25,000), the Pro Plan at $269/year offers everything in the Basic Plan, along with priority customer support and the ability to generate tax reports for up to 3 financial years.
Unlimited Plan
This top tier is designed for professional traders or businesses with exceptionally high transaction volumes. It offers everything in the Pro Plan at $639/year, including up to 50,000 transaction imports, tax reports for all your financial years (past and future), and a dedicated account manager.
Conclusion
Finally, we tried our best to explore Blockpit, a web and mobile platform designed to simplify cryptocurrency portfolio management and tax reporting.
This crypto tax and software tool, Blockpit offers a user-friendly interface and integrates with various crypto exchanges and wallets, allowing for automatic data import via APIs or manual CSV uploads.
As the use of cryptocurrencies becomes more widespread and governments create advanced regulations, Blockpit has the potential to add new features, which possibly include connecting with new online services for decentralized finance (DeFi), Non-Fungible Token (NFT) marketplaces, and other crypto & web3 innovations.
