Just remember to count the right way, iltpff - up or down, depending on what you want to do.
For example:
You want to play along with a song on a CD but its in the unfriendly (for guitarists) key of Eb.
All you need to do is put the capo on fret 1 and play the song in D, which is one half step DOWN in this case. It will sound exactly the same because the capo on fret 1 raises it back up again by exactly the same amount.
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