In the ever-evolving landscape of cryptocurrencies, one crucial aspect is often overlooked—tax reporting and management. With the rise of digital currencies, governments worldwide are increasingly regulating and taxing crypto transactions, creating a complex tax landscape for investors.
In response to the increasing need for efficient and accurate tax reporting in the crypto space, cryptocurrency tax software has emerged as a valuable solution. Among the cryptocurrency tax software options available such as ZenLedger and CoinLedger. Today, we will compare these two platforms, emphasizing why ZenLedger takes the lead as the superior choice for cryptocurrency tax management.
Top 6 Reasons Why ZenLedger is the Best CoinLedger Alternative
1. Accuracy
When it comes to handling tax reporting, precision isn’t just a priority; it’s ZenLedger’s core commitment. ZenLedger approaches the task with unwavering dedication, striving not only for accuracy but for exceptional precision.
ZenLedger’s audit report provides a comprehensive overview of all cryptocurrency transactions for a specific tax year, aiding tax professionals and investors in maintaining accuracy and tax compliance. It records buy and sell orders, transfers, and other crypto-related actions, ensuring precise and up-to-date tax calculations.
This standout feature consolidates and organizes all cryptocurrency transactions and performance data, providing a precise overview for tax filing. Whether you’re managing capital gains or optimizing tax liability through strategies like tax-loss harvesting, ZenLedger is indispensable.
Other than that, ZenLedger’s End-of-Year Valuation Report provides reassurance by simplifying the review of your transactions. It offers a comprehensive summary of your transaction history, making it easier to evaluate your tax obligations and gain a thorough understanding of your holdings. This report encompasses transactions from various exchanges, wallets, self-transfers, and more, all conveniently presented in a user-friendly spreadsheet.
2. Customer Support
ZenLedger stands by its commitment to provide top-tier customer support, available round the clock, seven days a week. What truly sets ZenLedger apart is its unwavering dedication to being responsive. In fact, the team is known for its lightning-fast response times, with most inquiries and concerns addressed within mere minutes. Your peace of mind is a priority, and Zenledger is here to assist you whenever you are in need.
For more comprehensive support, ZenLedger offers a variety of scheduled support calls, ranging from a free 15-minute session to paid options of 30 or 60 minutes. These calls are invaluable for obtaining in-depth assistance from a member of the expert support team. Moreover, ZenLedger offers two hours of personalized premium support from a dedicated customer service representative.
3. User-friendly Design
ZenLedger takes pride in its user-friendly interface and the intuitive experience offered. The software features a clean and organized dashboard that simplifies your journey through transactions, report generation, and effortless access to a range of features.
While CoinLedger’s tax calculation process involves five steps:
1. Import Your Wallets and exchanges
2. Classify Your Transactions Automatically
3. Track Cost Basis And Historical Prices
4. View Your Gains & Losses
5. Download Your Tax Report
ZenLedger’s tax calculation process, on the other hand, consists of only three simple and easy-to-use steps for its users:
1. Import your crypto transactions from the exchange
2. Review your crypto transactions from the exchange
3. Download and file your crypto tax forms
These steps simplify the process, making it more straightforward for users to calculate their cryptocurrency taxes. CoinLedger, while effective, involves more steps in the process, potentially requiring more time and effort from users.
Furthermore, ZenLedger boasts over 550 integrations with exchanges, wallets, and DeFi protocols. This extensive integration capability allows users with diverse crypto portfolios across multiple exchanges to effortlessly import all their transactions into one platform and enjoy automatic, stress-free tax calculations. In contrast, CoinLedger falls short with only 400 integrations, limiting its users’ ability to import transactions from a wide array of platforms.
4. Automation
In CoinLedger, the client tax reports are auto-generated by using the imported transaction data. Users gain access to reports for easy filing but don’t have to email back and forth with the client with sensitive data. The platform enables clients to securely import their cryptocurrency transactions independently. Once the data is in, users can conveniently download and review the complete tax report.
ZenLedger, on the other side, is a platform that has earned its stellar reputation for automation, simplifying cryptocurrency tax management for both individuals and tax professionals. This seamless process begins with the effortless integration of transaction data into ZenLedger, achieved through CSV or API, making the calculation of cryptocurrency taxes a smooth endeavor. Retrieving tax forms and navigating the filing process are equally streamlined.
Notably, ZenLedger offers seamless integration with popular online tax tools like TurboTax and TaxAct. This integration allows you to conveniently file taxes for your or your client’s entire portfolios, crypto holdings included, all within a single platform. Manual data entry and the associated risk of errors are eliminated, as ZenLedger takes care of the heavy lifting.
Beyond simplification, ZenLedger’s software empowers you to expand your client base effortlessly, accommodating those with unique tax requirements. This efficient tool saves you time and enhances your income potential. ZenLedger’s automation ensures a seamless tax management experience, reinforcing our status as the preferred platform for cryptocurrency tax professionals.
Lastly, ZenLedger provides users with three tax professional services. Firstly, there’s the Tax Pro Consultation priced at $275, which includes a 30-minute confidential session with a crypto tax expert to address queries and concerns. Secondly, the Tax Pro Prepared Plan – Single Year, available at $3,500 per year, involves tax professionals preparing your crypto tax return while optimizing your tax liability. Lastly, for those with multiple years of returns requiring filing or amendments, the Tax Pro Prepared Plan – Multi-Year, priced at $6,500 for two years, simplifies the process with assistance from professional tax partners. All services are performed by trusted crypto accountants, ensuring accuracy and peace of mind. ZenLedger’s flexible packages cater to all; be it a part or all tax returns, an IRS notice or audit, or even any assistance with any queries related to crypto tax, the platform has it all for its users.
5. Security and Encryption
ZenLedger is SOC 2 certified, which is a clear demonstration of its robust security controls and procedures. Independent third-party audits and annual penetration testing assess security controls. Defined roles, mandatory security training, and confidentiality agreements enhance team security awareness. ZenLedger’s services on AWS and GCP feature encryption, regular vulnerability scanning, and active monitoring. Backup services ensure business continuity, and incident response procedures are in place. Access is controlled with SSO, 2FA, and strong password policies. Quarterly access reviews and risk assessments are standard, and vendor risk is managed systematically.
CoinLedger employs passwords, data encryption, and server hosting for security. It ensures continuous operation with failover capabilities and entrusts payment processing to PCI-compliant Stripe. Exchange integrations are secure, requiring read-only API access, and users have full control over their data, including the ability to delete records and connections as needed.
As we can see, both ZenLedger and CoinLedger have implemented robust security measures to safeguard user data and maintain the integrity of their platforms. However, there are some differences in their security approaches:
ZenLedger’s Security Advantages:
1. Comprehensive Information Security Program: ZenLedger follows the SOC 2 Framework, which is a widely recognized and rigorous information security standard. This demonstrates a strong commitment to maintaining high security standards.
2. Third-Party Audits and Penetration Testing: ZenLedger undergoes both independent third-party assessments and penetration testing annually. This proactive approach to security testing ensures ongoing compliance and security readiness.
3. Security Awareness Training: ZenLedger provides mandatory security awareness training for team members, covering industry-standard practices and topics like phishing and password management. This education helps minimize human-related security risks.
4. Background Checks: Conducting background checks on all new team members in accordance with local laws adds an extra layer of assurance that individuals with questionable backgrounds are not part of the workforce.
5. Cloud Security: ZenLedger’s services are hosted on Amazon Web Services (AWS) and Google Cloud Platform (GCP), known for their robust security practices. Data is encrypted at rest and in transit, enhancing data protection.
6. Business Continuity and Disaster Recovery: ZenLedger utilizes its hosting provider’s backup services and monitoring systems to ensure data integrity and availability, reducing the risk of data loss during hardware failures.
7. Bounty Program: ZenLedger encourages security feedback through its bounty program, providing competitive bounties for vulnerability reports. This fosters collaboration with security researchers to identify and address potential threats.
8. Access Security: ZenLedger employs strong access controls, including Single Sign-On (SSO), 2-factor authentication (2FA), and password policies, enhancing protection against unauthorized access.
9. Vendor and Risk Management: Conducting annual risk assessments and vendor risk management processes helps identify and mitigate potential threats, including fraud, ensuring a proactive stance against risks.
While CoinLedger has implemented a few security measures, ZenLedger’s focus on standardized frameworks, third-party audits, ongoing training, and proactive risk management demonstrates a comprehensive and proactive approach to security, making it a robust choice for users concerned about their data’s safety and integrity.
6. Pricing
ZenLedger stands out as one of the most budget-friendly cryptocurrency tax software options available. You can kickstart your journey with a free plan, and when the time comes to explore ZenLedger’s premium offerings, you’ll be pleasantly surprised by the rich array of features and functionalities waiting for you.
ZenLedger offers more value for money compared to CoinLedger for several reasons:
1. Pricing Tiers: ZenLedger provides a wider range of pricing tiers, including a free plan for users with fewer transactions. This means users can choose a plan that aligns with their specific needs and budget.
2. Tax Professional Consultation: ZenLedger offers a Tax Pro Consultation plan for $275, providing users with access to experienced tax professionals who can provide guidance and support with their crypto tax returns. CoinLedger does not offer a comparable consultation service.
3. Tax Pro Prepared Plans: ZenLedger’s Tax Pro Prepared Plans offer users the convenience of having their crypto tax reports and returns prepared by trusted professionals with crypto expertise. These plans are competitively priced and can help users minimize their tax liabilities.
4. Support for DeFi, Staking, and Margin Trading: ZenLedger’s premium plans include support for complex crypto activities such as staking and margin trading. CoinLedger’s pricing does not specify support for these advanced crypto activities in its plans.
5. Dedicated Customer Service: ZenLedger offers premium support for all of its plans. However, the Platinum plan includes 2 hours of premium support, ensuring users receive personalized assistance when needed.
6. Unlimited Transactions: ZenLedger’s Platinum plan offers unlimited transactions, making it suitable for users with extensive crypto portfolios. CoinLedger’s plans have transaction limits, with the “Unlimited” plan having a starting price of $199.
7. Comprehensive Tax Reports: ZenLedger includes a range of detailed tax reports in all its plans, ensuring users have the necessary documentation for accurate tax filings.
8. Tax Loss Harvesting: ZenLedger explicitly mentions support for tax loss harvesting, even in its free plan, a valuable feature for users looking to optimize their tax liability. CoinLedger does not have this feature in its “free” plan.
ZenLedger offers a more flexible pricing structure, access to tax professionals, and additional features for managing complex crypto activities, making it a compelling choice for individuals and businesses seeking value for their money in cryptocurrency tax management.
Find Out Why Investors More And More Investors Are Choosing ZenLedger
Head-to-Head Comparison
Here’s a side-by-side comparison of ZenLedger and CoinLedger; know what’s the best for you:
Transaction importing and Tracking Capabilities
ZenLedger simplifies this entire process, condensing it down to a mere three steps. What’s more, by the end of this third step, you’re already equipped to proceed with filing your taxes hassle-free, making it the perfect CoinLedger alternative. Whereas CoinLedger involves five steps when it comes to the process, from importing your transactions to downloading your tax reports.
ZenLedger offers the advantage of real-time portfolio tracking, ensuring you have up-to-the-minute insights into your crypto holdings. CoinLedger, on the other hand, provides the capability to track your cryptocurrency assets across various wallets, exchanges, and blockchains, it’s important to note that this tracking is not in real-time.
Tax Form Generation
ZenLedger provides a comprehensive array of tax forms to cater to your cryptocurrency reporting needs, including:
1. Crypto Income Report (IRS SCHEDULE 1)
2. Capital Gains and Losses Report (IRS SCHEDULE D)
3. Sales and Other Dispositions (IRS FORM 8949)
4. Mining and Staking Income Report
5. Audit Trail Report
6. Report on Year-End Valuation
7. Accountability Report
8. Cryptocurrency Gifting
In contrast, CoinLedger offers a more limited selection of forms, which includes:
1. Short & Long Term Gains Report
2. Tax Loss Harvesting Report
3. IRS Form 8949
4. Cryptocurrency Income Report
5. TurboTax & TaxAct Direct Import
6. Audit Trail Report
This distinction underscores ZenLedger’s comprehensive approach to cryptocurrency tax reporting, ensuring you have all the necessary tools to meet your tax obligations.
Quality of Customer Support and Overall User Experience
ZenLedger goes the extra mile by offering on-demand customer service. This means that if you ever have questions regarding software usage or your tax-related inquiries, you have the convenience of reaching out to a tax professional for assistance.
CoinLedger, on the other hand, doesn’t even publish a customer service phone number. It only offers live chat support for all its pricing tiers. CoinLeger has a high rating on TrustPilot. On the flip side, there have been instances of less-than-ideal experiences shared by users in their feedback. Some of these accounts involve unexpected overcharges and less than satisfactory encounters with customer service.
ZenLedger’s commitment to top-notch customer support shines through. With assistance available seven days a week, you can rest assured that help is never far away when you need it most. What truly sets Zenledger apart is the unwavering dedication to responsiveness; the typical response time is just a matter of minutes, ensuring that ZenLedger promptly addresses all your queries and concerns.
When considering user experience, ZenLedger shines as an excellent choice, especially for individuals new to the world of cryptocurrency taxation and the broader crypto ecosystem. While its user-friendly interface is a standout feature, what truly sets ZenLedger apart is its remarkable appeal to beginners, making it a top pick for those exploring this complex landscape.
Although CoinLedger boasts a user-friendly interface, it simplifies the process of importing transactions, categorizing them, and generating tax reports. There have been customer recommendations for CoinLedger to enhance its offerings by expanding its blockchain support and crafting more beginner-friendly tutorials.
Cost Analysis
When comparing pricing and features, ZenLedger offers a range of affordable plans, including a free option, making it budget-friendly for various users and a perfect CoinLedger alternative. While CoinLedger also provides competitive pricing, ZenLedger outshines, offering a broader array of features, including DeFi, NFT, and Staking support, advanced tax strategies, and premium customer support with certain plans.
Here is a tabular representation for a better understanding-
| Feature | ZenLedger | CoinLedger |
|---|---|---|
| Plan and Pricing | Free Plan ($0) | No Free Plan |
| – Up to 25 Transactions | ||
| – All Detailed Reports | ||
| – Audit Report | ||
| – Tax Pro Access | ||
| – HIFO/FIFO/LIFO | ||
| – Unlimited Exchanges | ||
| – Crypto as Income | ||
| – Mining or Donations | ||
| – ICOs & Airdrops | ||
| – Tax Loss Harvesting | ||
| – FinCen/FBAR Alert | ||
| – TurboTax Integration | ||
| Plan and Pricing | Starter Plan ($49) | Hobbyist ($49) |
| – Up to 100 Transactions | – 100 Transactions | |
| – All Detailed Reports | – 400 Integrations | |
| – DeFi / Staking / NFTs | – FIFO, LIFO, HIFO, portfolio tracking, tax loss harvesting, and long- and short-term gains | |
| – Tax Pro Access | – Live chat and email support | |
| – HIFO/FIFO/LIFO | – Capital Gains Overview | |
| – Unlimited Exchanges | – DeFi | |
| – Crypto as Income | – NFTs | |
| – Mining or Donations | – Tax loss harvesting | |
| – ICOs & Airdrops | ||
| – Tax Loss Harvesting | ||
| – FinCen/FBAR Alert | ||
| – TurboTax Integration | ||
| Plan and Pricing | Premium ($149) | Investor ($99) |
| – Up to 5,000 Transactions | – 1,000 Transactions | |
| – All Detailed Reports | – 400 Integrations | |
| – DeFi / Staking / NFTs | – FIFO, LIFO, HIFO, portfolio tracking, tax loss harvesting, and long- and short-term gains | |
| – 2 hours of premium support | – Live chat support and email | |
| – Audit Report | – Capital Gains Overview | |
| – Tax Pro Access | – DeFi | |
| – HIFO/FIFO/LIFO | – NFTs | |
| – Unlimited Exchanges | – Tax loss harvesting | |
| – Crypto as Income | ||
| – Mining or Donations | ||
| – ICOs & Airdrops | ||
| – Tax Loss Harvesting | ||
| – FinCen/FBAR Alert | ||
| – TurboTax Integration | ||
| Plan and Pricing | Executive ($399) | Unlimited ($199+) |
| – Up to 15,000 Transactions | – 3,000+ Transactions | |
| – All Detailed Reports | – 400 Integrations | |
| – DeFi / Staking / NFTs | – FIFO, LIFO, HIFO, portfolio tracking, tax loss harvesting, and long- and short-term gains | |
| – 2 hours of premium support | – Live chat support and email | |
| – Audit Report | – Capital Gains Overview | |
| – Tax Pro Access | – DeFi | |
| – HIFO/FIFO/LIFO | – NFTs | |
| – Unlimited Exchanges | – Tax loss harvesting | |
| – Crypto as Income | ||
| – Mining or Donations | ||
| – ICOs & Airdrops | ||
| – Tax Loss Harvesting | ||
| – FinCen/FBAR Alert | ||
| – TurboTax Integration | ||
| Plan and Pricing | Platinum ($999+) | |
| – Unlimited Transactions | ||
| – All Detailed Reports | ||
| – DeFi / Staking / NFTs | ||
| – 2 hours of premium support | ||
| – Audit Report | ||
| – Tax Pro Access | ||
| – HIFO/FIFO/LIFO | ||
| – Unlimited Exchanges | ||
| – Crypto as Income | ||
| – Mining or Donations | ||
| – ICOs & Airdrops | ||
| – Tax Loss Harvesting | ||
| – FinCen/FBAR Alert | ||
| – TurboTax Integration |
In-Depth Analysis of the Plans
1. Free Plan: ZenLedger is the superior choice due to its diverse range of plans, including a free option, offering more value and flexibility compared to CoinLedger, which lacks a free plan.
2. Transaction Limits: ZenLedger offers higher transaction limits for its paid plans compared to CoinLedger. For example, ZenLedger’s “Executive” plan allows up to 15,000 transactions for $149, while CoinLedger’s “Investor” plan only permits 1,000 transactions for $99.
3. Additional Features: ZenLedger includes advanced features such as staking, which are not available in CoinLedger’s plans. This broader coverage ensures that ZenLedger caters to a wider range of cryptocurrency users with diverse investment strategies.
4. Premium Support: ZenLedger’s highest-tier plan offers two hours of premium support from a dedicated customer service agent. This personalized support can be invaluable for users who require assistance with complex tax matters. CoinLedger, on the other hand, does not provide a similar premium support option.
5. Comprehensive Reports: ZenLedger and CoinLedger offer detailed reports, but ZenLedger ensures that even its free plan users can access these reports, enhancing transparency and usability.
6. FinCen/FBAR Alert: ZenLedger offers alerts for FinCen and FBAR compliance, ensuring that users know regulatory requirements. CoinLedger provides similar alerts, but ZenLedger’s inclusion in lower-tier plans extends its benefits to more users.
CoinLedger’s Supposedly Free Trial
You can register with CoinLedger for a free account and with this, import your transaction history, monitor your capital gains and losses, keep tabs on your crypto portfolio, and preview your tax forms. But, there’s a catch! To access and download comprehensive reports, you will need to select and subscribe to a suitable plan.
Enters ZenLedger, the truly excelling platform offering a complimentary plan that grants users access to the majority of its features and includes 25 transactions!! Now that’s a catch.
Scores ZenLedger! The Clear Winner For You!
ZenLedger is the definitive choice for cryptocurrency tax solutions and the perfect CoinLedger alternative stands out for several key reasons. It offers a user-friendly experience suitable for beginners and experts alike, with an intuitive interface and a wealth of features.
ZenLedger’s feature set is extensive, encompassing DeFi, NFT, and Staking support, tax optimization, loss harvesting, and real-time portfolio tracking, giving users a comprehensive toolkit for tax management.
The user interface prioritizes ease of use, making it accessible to all levels of investors. Additionally, ZenLedger boasts top-tier 24/7 customer support via live chat and email.
ZenLedger consistently outperforms the competition in head-to-head comparisons, with advanced features and real-time tracking, streamlining the tax reporting process.
Furthermore, ZenLedger offers flexible pricing, including a free plan, ensuring accessibility to a broad user base. In summary, ZenLedger’s user-friendliness, extensive features, exceptional support, and competitive pricing make it the clear leader in cryptocurrency tax solutions. For reliable, comprehensive tax management, ZenLedger is the top choice for crypto investors. Don’t wait; sign in!
