Why crypto transaction reports are way more important and helpful than you think
When you first started out with cryptocurrencies, you probably held just one or two different coins and had everything gathered in one wallet. It was easy to keep track of your transactions and of the few times you bought or exchanged cryptocurrencies. But if you are like most crypto investors, then this manageable portfolio soon started to grow and diversify, many different coins got bought and sold, and your coins are spread across different wallets on different blockchains. Now, it is almost impossible to keep track of your crypto portfolio by yourself, and you must use a crypto portfolio tracking tool to help you with that. Such a tracking tool with the function to create transaction reports can be very useful, especially when creating tax reports.
When do I need a transaction report?
There are many reasons to create a transaction report for your cryptocurrencies. The most important and probably most common one is for tax reports. In most countries of the world, it is necessary to report certain crypto transactions to the financial institutions in your tax reports.
Another good reason to create a transaction report is to have an overview of your crypto portfolio transactions, so you can make better financial decisions. Especially when you are working in web3 and are getting paid a crypto salary or are creating invoices in crypto.
How does crypto transaction reporting work?
Most cryptocurrencies today are using a public blockchain. This means all transactions on the blockchain are publicly visible for everyone. This often shocks people new to cryptocurrencies, because they thought no one can follow their transactions. Simply by using a blockchain explorer and entering your public address, all transactions from this address can be seen. This already is a good starting point if you only want to know your transactions for yourself. But to create a crypto tax report, more data is usually necessary, like the value of the transaction in your native currency at that moment. What exactly is necessary can be slightly different from country to country, so it is recommended to check your local legislations or talk with a tax advisor. To help you further, our transaction reports at Basenode.io include all the important facts about your transactions:
Token value in your native currency
Additionally, you can simply combine multiple wallets and do not have to create a report for every wallet separately to cover all your cryptocurrencies at once. Creating transaction reports for your cryptocurrencies no longer has to be difficult.
At basenode.io, our mission is to eliminate the gap between traditional accounting and blockchain-based accounting. basenode.io is the easy-to-use accounting solution for digital assets that offers seamless crypto invoicing and portfolio tracking. We provide a self-explanatory user interface with a clean and modern look, that naturally supports your workflow. We support the most popular networks like Bitcoin, Bitcoin Lightning, Ethereum, Binance Smart Chain, Polygon, Ronin Chain and more.
About the author
John L. Schantin has been deeply involved in the blockchain space for several years. With a background in computer science and smart contract development, he is always on the search for innovative applications for blockchain technologies. You can contact him via LinkedIn.