CryptoNews came across this fantastic cryptocurrency trade monitoring tool called CoinTracking.info. We reached out to them for a feature interview, and you are reading the results of that course of action. Our writer Zoran Spirkovski had a chat with Dario Kachel, founder of CoinTracking. We’ve learned more about their service, their target audience, and what their tool can provide.
We were also interested in discovering more about the development process. Safe to say, we are inspired by Dario, and we know that you will be as well. Before we start, we would like to let you know that Dario was kind enough to give a special discount offer for CryptoNews readers. You can find the exclusive link at the end of this interview.
CryptoNews: Hello, Dario. I would like to start this interview with a personal question, so that our audience can get to know you better. Tell us, where are you from, and what is the most important thing to know about you?
Dario: Hey Zoran, glad to be here with you. I am from Munich, Germany and started getting into cryptocurrencies since 2012. Shortly after my first trades, I realized the difficulty of tracking coins and gains across multiple exchanges. That is why I created an Excel spreadsheet to track my coins like probably most people did at this time.
Before starting CoinTracking, I worked in Munich as a project manager in an IT company. This experience has helped me to know what to do after I noticed the drawbacks of the list. I had to adjust all prices manually, which led me to write a script, that does everything automatically. After three months of work, I released the first version of CoinTracking in April 2013. It was the first Crypto Portfolio Tool on the market.
CryptoNews: Who is the ideal customer for CoinTracking?
Dario: There are several target groups. To begin with, some users only have a fraction of a coin and want to track the fiat value in real time. Since they are unlikely to trade as much as the other groups I will mention, they can use our free plan for an extended period.
The second group consists of experienced traders that are present on multiple exchanges. Our solution makes it easy for them to track their entire portfolio and even retrace their steps to ensure that they have made the right decisions in the past. Additionally, it would be complicated and time-consuming to calculate gains for thousands of trades with conventional methods.
The third group consists of trading bot developers, which are responsible for thousands of trades per day. Our solution gives them an overview of the performance, as well as an in-depth analysis of their trades. This enables them to understand their creation and improve the effectiveness of their trading bots.
There is a fourth group that benefits a lot from our solution, which enables them to create tax reports. I am talking about businesses that accept crypto payments. Due to the volatile nature of these currencies, it is usually challenging to calculate the profits made on crypto sales correctly. With CoinTracking, this is no longer the case. Our historical overview and profit/loss calculator take care of everything necessary to create the tax reports. Also this saves a lot of time and money compared to the manual calculation or a tax consultant.
CryptoNews: It seems that CoinTracking offers much value for anybody using cryptocurrency. Also, of course, there are unique tax reports on CoinTracking for all currencies and countries. This reports must save a lot of time and money compared to the manual calculation or a tax consultant, right?
Dario: Indeed, all of our users get the tax reporting features as a part of their subscription. Also, it takes much time to analyze all of your investments on an exchange website. With CoinTracking we cut this down to just a couple of minutes or even seconds, which means a lot of time is saved for other things that our customers face on a day-to-day basis.
CryptoNews: How difficult was it for you to develop this solution?
Dario: It was a long and exhausting process that involved me spending hundreds of hours in front of the computer, sleepless nights, and an unknown quantity of coffee. To make it functional, I needed to integrate every currency and exchange out there, so today, our solution supports over 4000 currencies and 40 exchanges.
I never wanted to create an ordinary list of trades with a brief summary, but a professional tool which can be used for every user and every possible situation.
CryptoNews: It seems that you have a lot of available features on CoinTracking, would you like to tell us more about them?
Dario: We have created a lot of documentation that explains every feature on our platform. That is the best resource to learn more about them.
Just to mention a few things you can use CoinTracking for:
- Track trades, margin trades, lending, income, mined coins, gifts, spending, donations, lost or stolen coins
- Get historical data for each single currency and the whole portfolio (You want to know how much your coins were worth on 1 January 2015? No problem, CoinTracking knows the answer.)
- Know your profit/loss before selling with the Instant Gain Calculator (Just enter the number of coins you want to sell, and CoinTracking will tell you how much profit or loss you will achieve with this transaction.)
- Tax awareness. Most countries have a deadline for trades before they become tax-free (usually one year). The Short/Long calculation feature will tell you which coins can be sold on which date tax-free and thus save a great deal of time and money.
CryptoNews: That is impressive, and it seems like it’s been a lot of work. Did you have any help during the development process?
Dario: Well, to begin with, the development process is never really finished. We have a lot of new features and options that we want to develop for our audience.
To answer your question, I was completely alone when I began. After getting the first paying customers the work necessary to keep the service running smoothly increased significantly, so I had to start on boarding more people. Right now, we have a team of seven people for Customer Support, Marketing, API development, and Tax Law.
CryptoNews: You have about 70.000 active users, and that an impressive number. Would you like to give some advice to entrepreneurs that are developing their products?
Dario: Absolutely! Creating CoinTracking was not easy. There were many challenges along the way, but it was all worth it. The problem was big enough to warrant my attention, and I would start with saying “Aim to solve the biggest problem that you can.”
For people that haven’t started yet, you need to be aware that success is going to take:
- Awareness (of the audience and the problem)
- Persistence (to push through painful moments)
- Determination (confidence in the goal)
There are many other factors at play, but anyone with a decent work-ethic can overcome these challenges and make it out alive and thrive. In the end, the most important thing is to do what you enjoy.
CryptoNews: That is solid advice! Thank you very much for your time with us today.
Dario: Thank you for your time and the interview. I would like to use this opportunity to give a special offer for CryptoNews readers. We will provide a link that your readers can use to claim the offer. The readers will receive a 10% discount on their purchases of premium plans on CoinTracking, when purchasing them through this link.