Why You Need API Keys for Tax Software
Cryptocurrency transactions are taxable events in most countries. Tax software helps you automatically calculate your gains, losses, and taxable income from crypto trading. To do this, the software needs access to your transaction history.
With API Connection
- Automatic transaction import
- Real-time sync for new trades
- Complete history with minimal effort
- Accurate cost basis calculation
Without API Connection
- Manual CSV exports needed
- Time-consuming data entry
- Risk of missing transactions
- Higher chance of errors
Security Best Practices
Follow these practices to keep your Binance account safe when using API keys.
Read-Only Permissions
CRITICALOnly enable "Enable Reading" - never enable trading or withdrawal permissions for tax software.
IP Whitelisting
Restrict API access to your tax software's known IP addresses when possible.
Unique API Keys
Create separate API keys for each service. Never reuse keys across platforms.
Regular Rotation
Delete and recreate API keys annually or if you suspect any compromise.
Never Share Secrets
CRITICALYour API secret is like a password. Never share it via email, chat, or support tickets.
Monitor API Activity
Check your API Management page regularly for any unauthorized access attempts.
Step-by-Step API Key Creation
Follow these steps carefully to create a secure, read-only API key for your tax software.
Log in to Binance
Access your Binance account
- Go to binance.com and click "Log In"
- Enter your email or phone number
- Complete 2FA verification if enabled
- Make sure you are on the official Binance website
Navigate to API Management
Find the API settings page
- Click on your profile icon in the top right
- Select "API Management" from the dropdown
- Or navigate directly to: Account > API Management
- You may need to verify your identity again
Create New API Key
Generate a new API key pair
- Click "Create API" button
- Choose "System generated" API key type
- Enter a descriptive label (e.g., "Koinly Tax")
- Complete email and 2FA verification
Configure Permissions
Set read-only permissions
- Enable ONLY "Enable Reading" permission
- DISABLE "Enable Spot & Margin Trading"
- DISABLE "Enable Futures" permission
- DISABLE "Enable Withdrawals" - CRITICAL!
Set IP Restrictions (Recommended)
Add IP whitelist for extra security
- Click "Restrict access to trusted IPs only"
- Add your tax software's IP addresses
- Koinly IPs: Check their documentation
- Or select "Unrestricted" for easier setup
Save Your API Credentials
Copy and store your API key and secret
- Copy your API Key (public)
- Copy your Secret Key (shown only once!)
- Store both securely - you cannot view the secret again
- Click "Save" to confirm API creation
Required Permissions (Read-Only)
Tax software only needs READ access to your account. Never enable trading or withdrawal permissions when creating API keys for tax purposes.
Enable Reading
ENABLERequired for tax software to read your transaction history, trades, and deposits/withdrawals.
Enable Spot & Margin Trading
DISABLENOT needed for tax software. Keep disabled to prevent unauthorized trades.
Enable Futures
DISABLENOT needed for tax software. Keep disabled even if you trade futures.
Enable Withdrawals
DISABLENEVER enable this for tax software. Critical security risk if enabled.
Connecting to Popular Tax Software
Once you have your API key and secret, connect them to your preferred tax software.
Koinly
Free - $279/year
- Supports 800+ exchanges
- DeFi & NFT tracking
- Tax-loss harvesting
- Multiple country support
CoinTracker
Free - $199/year
- Portfolio tracking
- Real-time prices
- TurboTax integration
- Cost basis methods
CryptoTaxCalculator
$49 - $299/year
- Advanced DeFi support
- Margin trading
- Smart contract analysis
- Professional reports
TokenTax
$65 - $3,500/year
- Full-service option
- CPA review available
- Audit support
- NFT support
IP Whitelisting (Optional but Recommended)
IP whitelisting adds an extra layer of security by only allowing API access from specific IP addresses. If your tax software provides their IP addresses, add them to your API key restrictions.
IP Restricted (More Secure)
Only specified IP addresses can use the API key. Best for services with static IPs.
Unrestricted (Easier)
Any IP can use the API key. Acceptable with read-only permissions, but less secure.
Finding Tax Software IPs
Check your tax software's documentation or support pages for their IP addresses. Most providers list them in their help center under "API setup" or "Integration" guides.
Common Errors and Solutions
Invalid API Key
Cause: API key was entered incorrectly or has been deleted
Solution: Double-check for spaces or typos. Regenerate the key if needed.
API Key Expired or Revoked
Cause: Binance has disabled your API key due to inactivity or security
Solution: Create a new API key and update your tax software.
IP Not Whitelisted
Cause: Your tax software's IP is not in the allowed list
Solution: Add the software's IP addresses or set API to "Unrestricted".
Insufficient Permissions
Cause: "Enable Reading" permission is not enabled
Solution: Edit your API key and enable the "Enable Reading" checkbox.
Rate Limit Exceeded
Cause: Too many API requests in a short time
Solution: Wait 5-10 minutes and try syncing again.
Missing Transaction History
Cause: API only shows recent history or certain transaction types
Solution: Manually export CSV for older transactions from Binance.
Frequently Asked Questions
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