Whitebit is one of the largest cryptocurrency exchanges based in Europe. Founded in 2018 by Volodymyr Nosov, the founder and current CEO of the company, it has a user base of more than 4 million users worldwide. The platform offers a user-friendly interface and prioritises the security of the users in the crypto investment space. It has over 270+ cryptocurrencies listed on the platform and a wide range of trading tools that can be used to approach many possible investment opportunities in the crypto market.
As crypto’s potential has grown, many countries have begun to see it as a valuable asset. Therefore, crypto is now subject to taxes set by the country’s concerned authority. And these tax reports are pretty complex to make, and they often have errors that lead to penalties. So to avoid this, Whitbit users can now rely on KoinX, an automated crypto tax calculator. It seamlessly computes your transaction and generates accurate tax reports.
You can easily connect your Whitebit account with KoinX by following the below given detailed steps.
Now the scope for errors in your tax reports will be struck out when you start using KoinX. With KoinX, you will no longer have to face penalties from the authorities because of inaccurate tax filings.
A step-by-step guide on how to generate your Whitebit tax report with KoinX
Step 1: Log in to your Whitebit account.
Step 2: On the top right corner of the profile section, please click on API.
Step 3: Click on Generate a new key to create a new API.
Step 4: Now, log in to your KoinX account.
Step 5: Click on the Integrations section in the navigation bar.
Step 6: Search for Whitebit and select the exchange.
Step 7: Paste your API and secret keys and hit the Import Now button.
How To Easily Calculate & File Your Whitebit Taxes with KoinX
Step 1: Add all the chains and exchanges where you have an account.
KoinX supports the integration of all the leading exchanges, wallets and blockchains. You can connect any of them with KoinX and transfer the transaction data to generate accurate tax reports.
Step 2: Review your transactions.
After successfully integrating your exchange account and providing the transaction details, KoinX will provide you with a preview to identify any gaps in the transactions. If there are any warnings in your portfolio, you can return to this article to solve the issues.
Step 3: Generate your tax reports for the selected financial year
KoinX has the data of all the tax forms you will need and provides you with reports that can be easily understood. Here you have the option to categorise your trades as capital gains or as business gains. If you are into crypto for some passive income, you can choose capital gains, and if crypto is your primary income, you can go with the Business income option.
Step 4: File your taxes
After computing your transaction data, KoinX will provide you with accurate tax reports that you can download in various formats. You can store and share it with tax professionals for expert advice.
Important Things to Consider While Generating Your Whitebit Tax Report with KoinX
- KoinX automatically synchronises transaction data from your exchange or wallet at regular intervals. If you want to sync the data anytime, use the “sync now” feature on your KoinX dashboard.
- While creating the API, make sure you give the read-only permission. It will avoid any variation in your transactions that can cause inaccuracy in tax reports.
- Double-check the transaction data files while you upload it to KoinX.
Frequently Asked Questions
Do I need to report my Whitebit for tax purposes?
Yes, If you trade or invest in cryptocurrencies with WhiteBit or any other exchange, the profits are subject to tax, and you must report it. The 2022 Indian government’s budget mandated individuals to report their crypto transactions for tax purposes.
Does Whitebit report to the Income Tax Department?
No, Whitebit does not report the tax matters of their customers. It is a cryptocurrency exchange that provides a platform for users to trade a wide range of cryptocurrencies. However, the company Whitebit may have its own tax obligations according to where it is based.
Does Whitebit provide tax reports?
No, Whitebit does not provide tax reports for the portfolio of its users. It is a European cryptocurrency exchange that facilitates the buying and selling of various cryptocurrencies such as Bitcoin, Ethereum, Polkadot etc.KoinX is the platform that provides accurate tax reports of your crypto portfolio.
How are Whitebit transactions taxed?
Various countries have mandated tax laws and regulations around crypto investments. An example of that is the Indian government’s 2022 Budget states that the trading or spending of cryptocurrencies is subject to a 30% tax on profits and 1% TDS. While in the USA, long-term capital gains taxes are between 0% to 20%, and short-term capital gains taxes range from 10% to 37% for the 2022-23 year.
How does Whitebit tax reporting with KoinX work?
All you have to do is integrate your Whitebit exchange or wallet with KoinX by following the above-given guide. Then after you provide the transaction data to KoinX, it will compute the gains and losses, followed by a preview of the transactions and tax report. You can download the tax report in various formats to store or share.
What are the most common issues with importing transactions from Whitebit to KoinX?
While creating a new API, label it correctly according to where you will share and use it. It will avoid confusion and error while integrating your Whitebit account with KoinX. Also, when creating the new API for KoinX, ensure you have selected the ”read-only” permission so no one can alter the transaction data of your account.
How do I troubleshoot my Whitebit integration with KoinX?
If you face any issues while integrating your Whitebit account with KoinX, there is active customer support of KoinX that will guide you throughout the issue. You can contact our support team via live chat, social media (Twitter), or email at support@koinx.com.
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