Nothing these days, but did a lot when I was following the tMB crypto crew on Discord. And every trade is a taxable event. Plus, it's such a weird asset to assign $USD values to. You buy Bitcoin using $USD, then sell the Bitcoin to buy a shitcoin. Then you sell that shitcoin (essentially convert it to another coin, which you use to buy yet another shitcoin, less transaction fee). What's the value of that Bitcoin or the ratio of the shitcoin-to-Bitcoin at that precise moment in $USD when the crypto currency exchanges DNGAF about that unit of measure? It's nightmarish to track.
The tax software does all that in one of two ways:
- You export your transaction history and import it into the software, or
- You grant access to the software via secure API to your account or ledger on the crypto exchange (read only) so it can pull the entire transaction history and - if you're still trading on that exchange - keep up with your P&L for all of your transactions.
I tried doing that in a spreadsheet, and it was a nightmare. Using a 3rd party service also gives me "some" credibility in reporting those transactions to the IRS vs. "here's my spreadsheet - ain't it a beaut?" $ well spent in my mind.