# Best Crypto Tax Software for Perps Traders > Perps break most crypto tax tools. How Koinly, CoinLedger, CoinTracking and Awaken handle funding payments, liquidations and cost basis on Hyperliquid. *Source: https://hyperliquidguide.com/guides/trading/best-crypto-tax-software-perps-traders* There is a specific moment where crypto tax software stops working for perps traders. You upload a year of Hyperliquid activity, the tool ingests it happily, and the report comes back with a capital gains figure that looks roughly plausible and a funding income figure of zero. Nothing errored. The number is just wrong. This guide is about avoiding that. It covers what perps do that spot-oriented tools cannot handle, then compares the platforms that do handle it, including one that pays us nothing. > **Key takeaway:** The thing that separates these products is not price or interface. It is whether the tool ingests funding payments as a separate income stream and models a perp close as a derivative settlement rather than a disposal of an asset you never held. Everything else is preference. --- ## The Three Things Perps Do to a Tax Engine ### 1. Funding Payments Arrive Hourly, Forever Hyperliquid settles [funding](/guides/trading/funding-rates-explained) every hour. Hold one position open for a year and that is 8,760 individual settlements, each of which is a taxable event in most jurisdictions: income when you receive, potentially deductible when you pay. Run three positions and you are at 26,000 events before placing a single additional trade. Nobody reconciles that by hand, and a fills-only CSV export does not contain it. The tool either pulls `userFunding` from the chain or it silently reports zero. > **Warning:** A funding income line of exactly $0.00 on a year of perps trading is almost never correct. It is the most reliable sign that your import only captured fills. Check that field before you file anything. ### 2. A Perp Close Is Not a Disposal When you close a long on spot, you disposed of an asset you held. When you close a long perp, you settled a contract. You never owned BTC, so there is no BTC cost basis to reduce. Tools built around a spot ledger frequently model the second case as the first. What you get back is phantom acquisitions, negative balances of assets you never touched, and a "missing cost basis" warning list hundreds of rows long that you then spend a weekend clicking through. The bigger problem is that if you accept the defaults, the resulting gain figure is wrong. ### 3. Liquidations Look Like Nothing A [liquidation](/guides/trading/liquidation-explained) is a forced close, and for tax purposes it is a realized loss. In the raw data, though, it can appear as a position simply ceasing to exist, with the loss embedded in the margin balance rather than stated as a line item. Tools that do not model liquidations explicitly tend to drop them, and you lose a deduction you were entitled to. --- ## The Comparison ![Koinly's Hyperliquid integration page describing direct wallet import of trades and funding](/images/shared/partners/koinly-hyperliquid-integration.webp) | Platform | Hyperliquid | Funding as income | Liquidations | Price | Countries | |---|---|---|---|---|---| | **[Koinly](https://koinly.io/integrations/hyperliquid/)** | Direct wallet sync | Yes, automatic | Handled | Free to $279/yr | 20+ | | **[Awaken](https://awaken.tax/integrations/how-to-pay-taxes-on-your-hyperliquid-assets)** | Direct wallet sync | Yes, automatic | Handled | $99 to $999/yr | US-first | | **[CoinLedger](https://coinledger.io/)** | Wallet sync + CSV | Yes | Handled | $49 to $299/yr | US-first | | **[CoinTracking](https://cointracking.info/)** | CSV / API | Yes, manual mapping | Handled | Free to $65/mo | 100+ | | **CoinTracker** | CSV | Partial | Partial | Free to $599/yr | US-first | | **TokenTax** | CSV / API | Yes | Handled | $65 to $3,499/yr | Several | | **TaxBit** | CSV | Limited | Limited | Free (consumer) | US only | ### Koinly Koinly reads a Hyperliquid address directly, which is the feature that matters most here, and it supports the widest set of jurisdictions of anything on this list. If you file in the UK, Australia, Canada, Germany or most of the EU, the alternatives thin out fast and Koinly is usually the only one that knows your local rules. The free tier lets you import everything and inspect the full reconciliation. You only pay when you generate the report, which means you can verify it handles your year correctly before spending anything. Do that. Import, then check the funding line. Where it falls down: if a large share of your activity is obscure HyperEVM protocols rather than Hyperliquid perps, Koinly's pricing coverage for long-tail tokens is decent but not the best available. > **Tip:** Koinly's tiers are priced by transaction count, and funding settlements can count toward that total depending on how they are ingested. Check which tier your year lands in before assuming the entry price applies to you. ### Awaken Awaken is the most accurate reconciliation of messy on-chain activity we have tested, and it handles perps, LPs, yield tokens and NFT activity that other tools give up on. If your year involves serious [HyperEVM](/ecosystem/hyperevm-explained) DeFi alongside your perps trading, this is the one that produces a report you do not have to hand-correct. Two caveats. It is US-first, so international filers get less out of it. And it starts higher than Koinly's entry tier, because it is not really competing for the casual filer. We have no affiliate arrangement with Awaken. It is on this list because it is good. ### CoinLedger ![CoinLedger homepage showing tax report generation and TurboTax partnership](/images/shared/partners/coinledger-homepage.webp) [CoinLedger](https://coinledger.io/) is the simplest of the group to actually use, and it exports straight into TurboTax and TaxAct. For a US filer who wants a finished Form 8949 handed to the software they already use, that integration removes the last manual step. It also handles the 1099-DA situation clearly, which matters now that US brokers report cost basis. Worth noting: Hyperliquid, being a decentralized exchange with [no KYC](/guides/getting-started/hyperliquid-kyc-requirements), issues nothing of the kind. Whatever your centralized exchanges report, your Hyperliquid activity is still entirely your responsibility to document. Where it falls down: international support, and depth on unusual DeFi. ### CoinTracking ![CoinTracking homepage showing portfolio dashboard and tax report generation](/images/shared/partners/cointracking-homepage.webp) If you run bots, or your [API trading](/guides/trading/api-trading-guide) generates six figures of fills a year, most consumer tools become unusable long before they become inaccurate. [CoinTracking](https://cointracking.info/) is built for that volume, offers 13 costing methods, and covers 100+ countries. The interface is dense and dated, and the Hyperliquid path is CSV or API rather than a one-click sync. You are trading ease of setup for the ability to process a year that would otherwise choke everything else. ### The Rest **CoinTracker** is widely used and fine for spot-heavy portfolios, but its perps handling is the weakest of the well-known tools and it gets expensive at volume. **TokenTax** is really an accountancy service with software attached, worth it if you want a human reviewing the return and hard to justify otherwise. **TaxBit** is free for consumers and genuinely good at US spot reporting, but perps are not what it was built for. **Check It Handles Your Year Before You Pay** — Koinly imports a Hyperliquid address and reconciles fills and funding for free. You only pay at report generation, so you can verify the funding line first. [Import Your Hyperliquid History](https://app.hyperliquid.xyz/join/Concept211) --- ## How to Choose in Sixty Seconds - **You file outside the US.** Koinly. The others narrow sharply here. - **You file in the US and want TurboTax.** CoinLedger. - **Your year is heavy on HyperEVM DeFi, not just perps.** Awaken. - **You run bots and have tens of thousands of fills.** CoinTracking. - **You made a dozen trades and closed everything.** Import into Koinly's free tier, export the summary, and you may not need to pay anyone. --- ## Before You Generate the Report Whichever tool you land on, the same four checks catch nearly every error worth catching. 1. **Funding income is not zero.** Covered above, and worth repeating because it is the failure that hides best. 2. **Liquidations appear as realized losses.** If you were liquidated and the report shows no corresponding loss, the import missed it and you are overpaying. 3. **Transfers in and out are flagged as transfers, not disposals.** Moving USDC from your wallet to Hyperliquid is not a taxable event. Tools sometimes read it as one. 4. **Your opening balance matches reality.** If the tool thinks you started the year with assets you did not have, everything downstream inherits that error. > **Warning:** No tax software gets a year of perps trading completely right on the first pass. Budget half an hour to review the flagged transactions rather than trusting the export. That review is worth more than the difference between any two products on this page. --- ## Summary Perps generate a shape of data that most crypto tax tools were not designed for: continuous funding income, contract settlements rather than asset disposals, and forced closes that are easy to lose. The platforms worth using are the ones that ingest a Hyperliquid address directly and treat funding as its own income stream. For most traders that means Koinly. For US filers wanting TurboTax it means CoinLedger. For heavy DeFi it means Awaken, which pays us nothing and is still the right answer for that case. Once the tax side is handled, the [tax reporting guide](/guides/trading/hyperliquid-tax-reporting-guide) covers the export mechanics in detail, and the rest of the tooling around a Hyperliquid account, from hardware wallets to trackers, is in our [trader's stack](/tools/toolkit). **Lower Fees, Smaller Tax Bill** — Trading fees reduce your taxable gains, and our referral link cuts them by 4% for the life of the account. It is the rare optimization that helps on both sides of the ledger. [Start Trading - Save 4%](https://app.hyperliquid.xyz/join/Concept211)