My use case is also tax reporting. Like others I’m getting numbers I suspect to be inaccurate.
I think the flaw may be this: I assume you’re calculating cost basis and gains on a broad set of the cryptocurrencies (including Neo, Ripple, etc) that are traded on these exchanges. But when the coins leave the exchange you count it as a sale unless you can see the receiving end of that same transaction in one of the user’s wallets. But you only support reading from wallets/blockchain for a subset of the coins (btc, eth, ltc). So you’re counting fake gains anytime a user sends any of the non-btc|eth|ltc coins for storage.
Like others have said, you probably don’t want to assume that any outbound transaction from an exchange is a sale that should be taxed.
Generally it may be difficult to get people to pay $150 with issues like this popping up.
You could consider some combination of:
-give a bit more info about the tax reporting before requesting payment, enough to convince users it’s calculated correctly
- clearly outline the scenarios where users will get flawed tax info in help docs
- flag uncertain items for individual clarification by the user in your UI a la Turbotax (“we couldn’t find a recipient for your Neo transaction on Aug 20– did you send this to another person or business?”)
-offer the first year free to get help from folks ironing out these kinks, but try to establish lock in to get return business next year
This is great feedback, and you're totally right about your understanding of the problem. We do rely on having a full picture of all your exchanges and wallets for all the calculations to work correctly. For crypto wallets that we don't support, we recommend for now manually entering the transactions from those wallets. We plan to support more wallets in the near future. We have some more info on this issue in our FAQ: https://www.cointracker.io/faq#cost-basis-wrong
We will also make it clearer to the user when we see there are outgoing transactions that may indicate a missing wallet / exchange.
I think the flaw may be this: I assume you’re calculating cost basis and gains on a broad set of the cryptocurrencies (including Neo, Ripple, etc) that are traded on these exchanges. But when the coins leave the exchange you count it as a sale unless you can see the receiving end of that same transaction in one of the user’s wallets. But you only support reading from wallets/blockchain for a subset of the coins (btc, eth, ltc). So you’re counting fake gains anytime a user sends any of the non-btc|eth|ltc coins for storage.
Like others have said, you probably don’t want to assume that any outbound transaction from an exchange is a sale that should be taxed.
Generally it may be difficult to get people to pay $150 with issues like this popping up.
You could consider some combination of:
-give a bit more info about the tax reporting before requesting payment, enough to convince users it’s calculated correctly
- clearly outline the scenarios where users will get flawed tax info in help docs
- flag uncertain items for individual clarification by the user in your UI a la Turbotax (“we couldn’t find a recipient for your Neo transaction on Aug 20– did you send this to another person or business?”)
-offer the first year free to get help from folks ironing out these kinks, but try to establish lock in to get return business next year