Koinly allows you to tag cryptocurrency deposits and withdrawals that have special meaning in your tax reports.
Deposits can be tagged as Airdrop, Mining, Staking Other Income, Loan Interest. These deposits will appear under the Income section on your tax reports.
Withdrawals can be tagged as Gift, Donation, Lost, Ignored and Cost. Fiat withdrawals can not have any labels.
The Gift/Lost/Donation 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.
The Cost label will still result in a profit/loss but the transaction will also show up on the Expense section of your Tax Report.
The Ignored tag can be used when you want to completely exclude a transaction from all capital gain calculations and reports, it is essentially the same as deleting the transaction. The only reason you would ever need to use it is if your wallet is auto-synced and you want to get rid of some specific transactions. Atm synced wallets *may* add deleted transactions back. You might also be tempted to ignore Withdrawals that you know are Transfers to your own wallets, but it's better to add all your wallets and let Koinly match your transfers automatically.
Note: The 'Ignored' may be removed in the future so try to avoid using it.