Definition
The quote currency supplies a market’s price unit. It may be fiat money, a stablecoin, or another cryptocurrency. It is not necessarily the currency in which an account reports profits, and it need not be the asset charged for trading fees.
How It Works
In ETH/USDT, a hypothetical price of 2,500 means 2,500 USDT per ETH. Before fees, buying 0.4 ETH at that price requires 1,000 USDT. Switching to ETH/BTC expresses the same underlying asset in BTC instead, so price changes now reflect ETH’s value relative to BTC.
Key Considerations
A quote asset can change in value itself. Even stablecoins can deviate from their target value, so a gain measured in the quote currency is not automatically the same gain in local money. Confirm the unit when comparing prices, account performance, and order amounts.