Leading Crypto Tax Platform ACCOINTING.com Looks To Redefine Portfolio Tracking Among Crypto Traders
The resurgence of bitcoin’s price to new all-time highs has spurred a renewed class of investors to explore the cryptocurrency market. And while both veteran and novice traders may be drawn to digital assets on the rapid rise of BTC, they have also likely found the cryptocurrency landscape to be far more nuanced and diverse than it was even two years ago when bitcoin was last climbing to new peaks.
From this year's halving in bitcoin and the launch of the Ethereum 2.0 protocol to the introduction of hundreds of new coins and increased government scrutiny, the factors influencing the cryptocurrency market are complex and varied, to say the least. Keeping track of these myriad assets across various wallets and exchanges only adds to the difficulty in approaching the crypto market
It’s a problem the founders of cryptocurrency tracking and accounting platform ACCOINTING.com have been acutely aware of, ever since first launching in 2019, and it's one that they hope to address with the recent refinements introduced to the platform’s portfolio tracking and asset research capabilities.
“What we realized is that a lot of people are using various different applications in order to track and have an overview of their portfolio,” explained Accointing co-founder Alex Lindenmeyer. “If users are importing all of their data to our platform in order to do their taxes, which was the initial goal of Accointing, we should expand upon our tracking capabilities to give better insights to users in terms of their actual performance.”
Benzinga sat down with Lindenmeyer and fellow co-founder Dennis Wohlfarth to gain a fuller picture of how the Accointing platform has grown from its original instantiation as primarily as tax tool to one that now provides cryptocurrency traders a holistic view of, not only their own assets, but the trends occurring throughout the cryptocurrency ecosystem in the portfolios of fellow traders.
Sophistication And Accuracy
Among its refined capabilities, Accointing now boasts asset and price tracking across nearly 400 cryptocurrency wallets and exchanges, from which it also monitors and compiles transaction data among its users. This data then provides data signals that users can access via the platform’s website or mobile app to set price alerts, inform their own trading or gain greater insight into how other crypto traders on the platform are approaching a particular coin.
According to Wohlfarth, who is the company’s tax authority, the genesis of Accointing’s improved tracking and data functionalities stem from the sophistication of the initial accounting capabilities.
“The heart of Accointing is as a record-keeping platform that allows you to create all sorts of outputs, but the first output was the tax report because that was the biggest need among investors,” explained Wohlfarth. “We now use that same data structure to generate another output for information about the user's portfolio, one that actually creates more insights for users and can help them make better trades with better knowledge about their average prices, overall performance, about their long and short term holdings of the different assets.”
Building from the basis of its tax accounting services not only helped Accointing refine its new portfolio tracking and market data capabilities, but it also helped to ensure the quality and accuracy of that data, including market cap, pricing and exchange rates in forex.
“The really cool thing about all of these new outputs is that we have a perfect and accurate data structure for the user because of our initial start with taxes, which is not the case in a lot of the other crypto trackers since they started as a tracking platform,” said Wohlfarth.
That accounting capability has also undergone some refinements in recent months. Wohlfarth elaborated how their team has established close partnerships with CPAs and tax preparers in the U.S. and the U.K. as well as E.U. nations Germany, Switzerland and Austria to continuously update and refine their reporting systems in each nation’s evolving crypto tax structure.
A New Understanding Of Crypto
Accointing’s added functionalities on top of its core tax reporting services all aim to solve the major issue Accointing discovered over its initial launch, which is to provide users a comprehensive and sophisticated understanding of their portfolio and the cryptocurrency market as a whole.
Lindenmeyer explained, “What we've extended with these improvements is really an understanding of one's portfolio allocation while also adding the aspect of comparing yourself versus other traders. We’re giving users a more realistic view of how they’re actually doing, not only In comparison to the gains that they make, but rather, also allowing them an understanding how their portfolios are moving in relation to each other as well as the market.”
The end result, Lindenmeyer and Wohlfarth anticipate, is that platform serves as an all-in-one portfolio management and research platform from which cryptocurrency traders of all kinds can gain unique insight into the rapidly changing crypto market while also generating new perspectives within the community itself.
And with that lofty distinction, the two also hope the platform itself contributes to defining the ever-shifting sands of cryptocurrency.
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