Is coinTracking safe?

　　

Is CoinTracking Safe or Scam？

　　

Introduction

　　CoinTracking is a cryptocurrency portfolio tracking and tax reporting platform that has gained significant traction since its launch in 2013. With over 1.8 million users and a total portfolio value exceeding $41.5 billion, CoinTracking positions itself as a comprehensive tool for both novice and experienced cryptocurrency traders. Given the complexities of managing cryptocurrency investments and the increasing scrutiny from tax authorities, it is crucial for traders to carefully assess the reliability and safety of platforms like CoinTracking. This article aims to provide an objective analysis of CoinTracking, focusing on its regulatory compliance, company background, trading conditions, customer safety measures, user experiences, platform performance, and overall risk assessment.

　　

Regulation and Legitimacy

　　Regulation plays a pivotal role in ensuring the safety and legality of financial platforms. CoinTracking operates primarily in Germany, where it is subject to strict financial regulations. The platform does not hold a traditional financial license, as it primarily serves as a software tool rather than a financial service provider. However, it partners with several tax advisors and legal experts to ensure compliance with local laws.

Regulatory Body	License Number	Regulatory Region	Verification Status
N/A	N/A	Germany	Verified

　　The absence of a formal regulatory license raises questions about the platform's accountability; however, CoinTracking's long-standing presence in the market and its partnerships with tax professionals provide some reassurance. The platform has maintained a good reputation within the cryptocurrency community, indicating a history of compliance and reliability.

　　

Company Background Investigation

　　CoinTracking was founded by Darius Kachel in 2013, with the goal of simplifying the process of tracking cryptocurrency investments and generating tax reports. The company has grown significantly, now boasting a professional network of over 280 tax advisors and lawyers. This extensive network aids in providing users with accurate and compliant tax reporting options across various jurisdictions.

　　The management team behind CoinTracking is composed of experienced professionals with backgrounds in finance and technology. Their expertise contributes to the platforms continuous development and improvement. Transparency is a key aspect of CoinTracking's operations, with comprehensive information available about its services, features, and updates. This level of openness is essential for building trust with users.

　　

Trading Conditions Analysis

　　CoinTracking operates on a subscription-based model, offering various pricing plans that cater to different user needs. The free plan allows users to track up to 200 transactions, while paid plans offer increased transaction limits and additional features. The pricing structure is competitive compared to other similar platforms.

Fee Type	CoinTracking	Industry Average
Major Currency Pair Spread	Variable	0.1% - 0.5%
Commission Model	Free (limited)	0.1% - 0.5%
Overnight Interest Range	N/A	N/A

　　While the basic features are accessible for free, users may find themselves needing to upgrade to a paid plan as their trading activity increases. This tiered pricing model is common in the industry but can lead to unexpected costs for high-frequency traders. Users should be aware of the potential for additional fees associated with certain features, particularly those related to tax reporting.

　　

Customer Funds Security

　　The security of customer funds is paramount in the cryptocurrency industry, and CoinTracking implements several measures to protect user data. The platform employs data encryption and two-factor authentication (2FA) to enhance account security. Importantly, CoinTracking does not require direct access to users exchange accounts; instead, it allows for manual or API-based transaction imports, which minimizes the risk of unauthorized access.

　　In terms of fund segregation and investor protection, CoinTracking does not hold user funds, as it acts solely as a tracking and reporting tool. This means that users retain control over their assets within their respective exchanges. However, the lack of a formal fund protection scheme may be a concern for some users, especially in light of previous security breaches in the industry.

　　

Customer Experience and Complaints

　　User feedback on CoinTracking is generally positive, with many users praising its comprehensive features and ease of use. However, like any platform, it is not without its complaints. Common issues include difficulties with the initial setup, challenges in integrating with certain exchanges, and some users reporting delays in customer support responses.

Complaint Type	Severity Level	Company Response
Integration Issues	Medium	Addressed in updates
Customer Support Delays	High	Improved response times in recent months

　　One notable case involved a user struggling to import transactions from a lesser-known exchange. The user reported a lack of support, which led to frustration. CoinTracking responded by enhancing its integration capabilities and providing additional resources for users facing similar issues.

　　

Platform and Execution

　　The performance of CoinTracking's platform is a critical factor for users. The interface is user-friendly, allowing for easy navigation and access to various features. Users can expect real-time updates on their portfolio and tax obligations, which is essential for effective management.

　　Order execution is not applicable in the traditional sense, as CoinTracking does not facilitate trading directly. Instead, it focuses on tracking and reporting. However, users should be aware of potential delays in data updates, especially during peak trading times when exchanges may experience high volumes.

　　

Risk Assessment

　　Using CoinTracking does involve certain risks, primarily related to data security and the potential for inaccuracies in tax reporting. However, the platform has implemented measures to mitigate these risks.

Risk Category	Risk Level (Low/Medium/High)	Brief Explanation
Data Security	Medium	Potential for phishing attacks
Tax Reporting Accuracy	Medium	Dependence on user input
Platform Reliability	Low	Established track record

　　To mitigate these risks, users are advised to enable 2FA, regularly update their passwords, and ensure their transaction data is accurately imported and categorized.

　　

Conclusion and Recommendations

　　In conclusion, CoinTracking is not a scam; rather, it is a legitimate tool that offers valuable services for cryptocurrency traders. However, users should exercise caution and be aware of the potential risks associated with using the platform. The absence of formal regulation may raise concerns, but the platform's long-standing reputation and partnerships with tax professionals provide a level of assurance.

　　For traders looking for reliable alternatives, platforms like Koinly and CoinLedger may also be worth considering, as they offer similar functionalities with varying fee structures. Ultimately, the choice of a cryptocurrency tracking tool should align with individual trading habits and needs, ensuring that users can effectively manage their portfolios and comply with tax obligations.

　　In summary, Is CoinTracking safe？ Yes, it is safe to use, but users should remain vigilant and informed to maximize their experience.