Co-founder of BearTax
API is a way to interact with the system (In this case, it’s an Exchange) from an external application. This interaction is/can be restricted by the system(Exchange). A user can grant Access and Authorization using the settings on Exchange.
The access is a multi-level feature and could be one of the below options.
Now that you know what an API is and the differences between various access permissions, you can grant permissions knowledgeably.
Short answer: To have the answer NO, you need to grant “read only” or “view only” access
The first step to calculate your tax liability (capital gains) on trading cryptocurrency is by consolidating trades from the exchanges that you have traded.
Usually exchanges will offer an option to download complete trade history but few exchanges will only provide an API to do the same. In such cases, there is a demand to understand the import of trades via API.
Tax calculation softwares like BearTax can calculate your tax liability using general trade history files (csv, excel formats) and API to provide you with required tax documents based on fiscal tax year and native currency.
BearTax will always ask only for a “read-only” or “view-only” access as we need to just read your transactions and fetch them to calculate your tax liability. So, fear nothing and go ahead to calculate tax liability on BearTax.
If you have got any questions regarding the API or granting access or using the tax calculation software, reach out to us at [email protected].
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