Koinly allows you to tag cryptocurrency deposits and withdrawals that have special meaning in your tax reports.
The terms 'Labels' and 'tags' are used interchangeably in Koinly and refer to the same thing.
Deposits can be labeled as one of these:
Reward (used for staking rewards / referral bonuses etc)
These deposits will appear under the Income section on your tax reports unless this has been disabled in the settings.
Withdrawals can be tagged as Gift, Lost, Cost, Interest payment, or Margin Fee.
The Gift/Lost labels are special and will result in the withdrawal not generating any gains. It is as if you sold the coins for the same price that you bought them for. You should only use these tags if you know that your country does not tax Gifts/Donations/Lost assets.
Read more about the Gift label here
The Cost/Margin Fee/Interest payment labels will still result in a profit/loss but the transaction will also show up in the Expense section of your Tax Report.
There are a few other labels in Koinly that can be used for certain transactions:
Realized P&L can be used for futures/contracts/options trades. This label will tell Koinly to treat the entire transaction as profit/loss. See more here
Swap can be used for any tax-free "trade". This label should not be used for regular trades but only tax-exempt transactions such as migrations and rebases. See more here
Liquidity In/Out can not be applied manually but will be applied by Koinly when sending or receiving liquidity from liquidity pools on DEXes. See more here
Sent to Pool / Received from Pool are not actually labels. Turning a deposit/withdrawal into a Pool transaction will allow Koinly to effectively track the cost-basis of any assets that are sent to a staking pool but returned later. See more here