How BitLedger calculates, and what it does not do

Where the data comes from

Wallets are read through their public address: more than 30 chains including Bitcoin, plus Solana. No private keys and no seed phrase are asked for, and no transaction can be triggered through the connection.

Exchanges are connected either with read-only API keys or by reading in the platform's CSV export. Which exchanges are supported is shown in the app; the list changes too often to repeat it here.

How a transaction is classified

In two stages, and the order is the point:

1. Fixed rules first. What is unambiguous, a staking credit, a gas fee, a transfer between two of your own wallets, is classified by a rule. Rules are deterministic: the same input always gives the same output, whenever you sync.
2. The model only for the rest. What no rule covers goes to a language model, which applies the rules of the chosen country. Every result gets a confidence.

If the confidence is below 80 percent, the transaction counts as unreviewed and appears under «uncertain classification». It does not quietly go into the report. This threshold is a single number in the code; there is no second path around it.

Every AI classification is a suggestion — you can check and override any transaction. Every transaction shows the reasoning its classification rests on. You can override any classification; your correction goes into the report.

How values are set, and where that stops

Prices come from CoinGecko, at the time of each transaction and, for holdings, on 31 December.

For wealth tax, the year-end price of the ESTV price list counts for listed tokens, not ours. The two can differ. The report points this out at that place, and for tokens on the price list you should use its value.

That is written plainly on purpose: a tool that pretends to replace the official price list takes a check off your hands that you cannot hand over. Which price applies when is in the guide to the tax value on 31 December.

What is checked before every report

• Holdings against the chain. What our ledger says is compared with the actual balance at the address. If it differs, that is shown, not rounded.
• No holding may go negative. A sale without an earlier acquisition means an inflow is missing, typically an exchange not connected or a forgotten address.
• Transfers between your own wallets. They are recognised and not counted as a sale and a purchase. That is the mistake that distorts a tax bill the most.
• Gaps are named. Transactions without a classification, a price or a confirmation are listed one by one before the report is made, not as a silent zero.

What BitLedger does not do

• No tax advice. The guides and the report give general information with sources. They do not replace an assessment of your personal situation.
• No filing. The report gives the figures for your return; you or your tax adviser file it.
• No decision on professional trading. We show where your trading pattern comes close to the criteria of Circular 36. The tax authority decides, case by case.
• No replacement for the ESTV price list, as described above.

How we deal with mistakes

The law changes, and our rules can be wrong. That is why every classification carries its reasoning, every guide its review date and sources, and every figure in the report can be traced back to the single transaction.

If you think a classification is wrong, that is first of all a sign of a rule that needs sharpening, not of a user error.

Frequently asked questions

Does BitLedger use the prices of the ESTV price list?

No. Valuation uses prices from CoinGecko. For wealth tax, the year-end price of the ESTV price list counts for listed tokens; our values can differ from it. The report says so explicitly at that point.

Does an AI decide my taxes?

No. Transactions that are unambiguous are classified by fixed rules: the same input always gives the same output. Only what no rule covers goes to a language model, and its result carries a confidence. Below 80 % the transaction is set aside for review instead of quietly going into the report.

Can I change a classification?

Yes, any. Every transaction shows the reasoning behind its classification, which you can read before you agree or override it. Your correction goes into the report.

Does BitLedger need access to my wallet?

Only to the public address. No private keys and no seed phrase are asked for, and no transaction can be triggered through it. Exchanges are connected with read-only API keys or by CSV export.