Quoted Currency

What Is a Quote Currency?

A quote currency, also known as a pricing currency, is the unit used to express the value of an asset in trading and accounting—it serves as the “measuring stick” for price. In a BTC/USDT trading pair, USDT is the quote currency, while BTC is the base asset being priced.

For example, when you see “BTC price is 43,000 USDT,” USDT is the quote currency. It determines how you compare prices, calculate profit and loss, and what unit appears in your reports or tax filings. Whether you’re trading forex, stocks, or crypto assets, the quote currency has always been fundamental to displaying prices and measuring returns.

Difference Between Quote Currency and Base Currency

The quote currency is used for pricing, while the base currency is the asset being traded. In BTC/USDT, BTC is the base currency (the amount you buy or sell), and USDT is the quote currency (used to express price and P&L).

A simple way to distinguish them is in the order entry interface: quantities are usually denominated in the base currency (e.g., buying 0.1 BTC), while prices and trade amounts are displayed in the quote currency (e.g., 43,000 USDT per BTC). Thus, the base currency affects your asset holdings, whereas the quote currency determines the unit for prices, returns, and costs.

How Is Quote Currency Used in Crypto Trading?

In crypto trading, quote currency is central to how trading pairs are priced, how account valuations are shown, how risk thresholds are set, and how contracts are settled. The most common quote currencies are stablecoins and fiat currencies.

Stablecoins are tokens pegged to fiat (such as USD), aiming to reduce price volatility—popular examples include USDT and USDC. Using USDT as a quote currency brings your asset pricing and profit/loss closer to a USD perspective. Fiat currencies (like USD or CNY) are government-issued money often used for overall asset valuation and external reporting.

For instance, in the spot market, BTC/USDT is quoted in USDT, while ETH/BTC is quoted in BTC. On derivatives platforms, “USDT-margined” or “USD-margined” contracts and funding fees are closely linked to the quote currency.

How to Switch Quote Currency on Gate?

You can change your quote currency by selecting different trading pairs, adjusting asset display units, or choosing your preferred contract settlement method.

Step 1: On the spot trading page, select a trading pair that includes your desired quote currency. For USDT pricing, choose BTC/USDT; for BTC pricing, choose ETH/BTC.

Step 2: On the asset page or home screen, adjust the fiat display unit (such as USD or CNY) in the valuation settings. This “display unit” affects your total asset and profit/loss presentation, effectively changing your reporting perspective’s quote currency.

Step 3: In the derivatives section, select your contract settlement method—such as USDT-margined or USD-margined. The settlement method determines which currency will be used for margin, P&L calculation, and funding rates.

Step 4: Check if alerts and risk thresholds (e.g., liquidation price or stop-loss price) are displayed in your target quote currency to avoid misjudgment due to inconsistent units. The interface may change with updates; always refer to Gate’s latest guidelines.

For fund safety, ensure you understand the difference between quote and settlement currencies to prevent risks from conversion errors.

How to Choose the Right Quote Currency?

The key is aligning your quote currency with your income, expenses, and reporting needs—balancing stability with liquidity.

If you settle mostly in USD (your salary or costs are in dollars), using USD or USDT as your quote currency feels more natural and minimizes exchange rate fluctuation impact. If you live in a CNY environment and need to assess profits and risks from a RMB perspective, switch your asset display and reports to CNY.

Also consider trading depth and fees: major USDT-quoted pairs typically have better liquidity and lower slippage; smaller tokens quoted in BTC may have different depth and fee structures.

Tax and compliance matter too: your reporting currency affects conversion methods. Unifying your quote currency early simplifies accounting and verification.

What Risks Come With Changing Quote Currency?

The most common risk is exchange rate fluctuation. While you may have gains in the quote currency, those profits can be eroded when converted to your home currency. For example, if USDT weakens against CNY, your USDT-denominated profits shrink when viewed in CNY terms.

Stablecoin depegging risk is also important. Stablecoins aim for a 1:1 peg with fiat like USD but can temporarily deviate during extreme market events. If you hold large positions denominated in stablecoins, short-term depegging impacts valuation and settlement.

Cognitive bias risk exists too. When the quote currency changes, many users experience “money illusion”—thinking their asset’s value increased or decreased while ignoring underlying exchange rate moves. Consistently using one quote currency and regularly reconciling helps avoid misjudgment.

How Does Quote Currency Affect Returns, Costs, and Reports?

The quote currency sets the units for recording and comparing transactions, directly impacting how returns are presented, fees are calculated, and external reports prepared.

Example: If you buy BTC quoted in USDT at 40,000 USDT and sell at 44,000 USDT, your nominal gain is 10%. But if USDT depreciates by 2% against CNY at sale time, your CNY-based return is (44,000×0.98−40,000)/40,000≈7.8%. Clearly, both quote currency choice and exchange rate changes affect actual returns from your home currency’s perspective.

Fees and funding rates work similarly—many platforms charge these based on the quote or settlement currency, which may differ once converted into your local currency. For tax filing and auditing purposes, it’s crucial to choose a unified standard for clarity.

Trends of Quote Currency in Web3 Payments and Settlement

As of December 2025, stablecoins continue expanding their role in Web3 payments and settlements. Exchanges and wallets now commonly offer multi-currency views (USD, USDT, EUR, CNY) and support cross-chain and cross-border settlements.

Simultaneous multi-quote and multi-settlement options are increasingly common: users can switch display units on the frontend while contracts and clearing layers handle unified settlement on the backend. Blockchain-based FX tools and cross-border payment solutions are maturing—making it easier for businesses and individuals to invoice, reconcile, and settle in their chosen quote currencies.

On compliance, platforms now mark quote currencies clearly for account valuation, transaction history, and report exports—reducing conversion errors and meeting tax requirements.

Summary

Quote currency is your fundamental unit for measuring price, returns, and risk. Understanding its difference from base currency—and its roles across trading pairs, asset valuation, and contract settlement—helps you avoid confusion in selection, conversion, and reporting. On Gate, you can switch perspectives through trading pair selection, asset display units, or contract settlement options. When choosing a quote currency, consider your income/expenditure currency preference, stability/liquidity needs, as well as tax and compliance requirements. Watch out for risks like exchange rates and stablecoin depegging; maintain a unified reporting standard and regularly reconcile for more accurate returns, costs, and reports.

FAQ

What Is Quote Currency in English?

The English term for 计价货币 is “Quote Currency” or “Pricing Currency.” In trading contexts, it refers to the reference currency used for pricing assets—such as USDT in a BTC/USDT trading pair. Knowing this term helps when reading global exchange documentation or communicating with international traders.

Which Currency Is the Quote Currency in a Pair? What Is Its Role?

In a currency pair, the second-listed currency is always the quote currency. For example: In BTC/USD, USD is the quote currency used to express BTC’s price. The quote currency provides a standardized measure of value so you can quickly understand how much an asset is worth—just like prices tagged in RMB for goods in China.

Why Does an Asset’s Price Vary With Different Quote Currencies?

Because each quote currency’s own exchange rate fluctuates. For example: BTC priced in USDT vs. priced in EUR will show different numbers—though the underlying asset hasn’t changed. This is similar to how a product costs different amounts when priced in RMB in China versus JPY in Japan—the numbers differ but represent equivalent value.

How Can I Choose My Preferred Quote Currency on Gate?

On Gate’s trading interface, click “Settings” or “Preferences” then select “Quote Currency” to switch among USD, CNY, EUR or others. Tip: If you trade mostly in USD use USD for easier comparison; if you need local cost calculation use your home currency. Gate supports most major global currencies to meet various user needs.

Does Choosing a Quote Currency Affect My Actual Returns?

Quote currency only changes how values are displayed—it doesn’t alter your real returns. Whether you choose USDT, USD or EUR as your quote currency does not affect your actual asset quantity or true value. However, selecting an appropriate quote currency helps with local cost calculations and tax filing; choose based on your country’s trading environment and accounting habits.