So I am struggling to get my head around calculating my cost basis for my crypto after a lot of confusing trades. My situation is complicated, but I can simplify my problem with the following example :
Jerry buys 1 Btc for 100, a few weeks later buys another for 200.
Jerry has 2 bitcoins, wants to store in a wallet.
2 weeks later price goes up and Jerry wants to sell 0.75 for 300 and keep the rest in his wallet incase it goes up.
The problem arises is which bitcoin did he sell? From the 100 bitcoin or the 200 bitcoin?
How would you determine which bitcoin was the one that entered the exchange to be sold?
This problem applies to me in a more complex way, I have bought in small increments over the years and I have traded different amounts for different crypto currency and traded back into bitcoin.
Am I missing something super simple here? My maths is not too great but I can understand complex problems with simple problems to guide me.
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