How to Calculate the Cost Basis of a Fungible Token

If you sell an NFT for say 50 ETH, you would pay tax based on the income of what that 50 ETH is worth in say US dollars if you're in the US. Whatever you paid for that NFT initially is your cost basis and that'll help reduce the amount of gain. But say you bought it for a thousand dollars or the equivalent of a thousand dollars of ETH and then when you sold it, it was 50,000. Then you'd have a $49,000 gain. And it's so much math because you can, depending on how much ETH you have, there are different cost basis for the ETH.

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