Over a period of time, the evolution of money has resulted in transformation from paper-based economy to card-based one. Either way, the value of money depends upon its easy conversion and storage.
The crypto-based economy deals with the native crypto named bitcoin and alternative coins, aiming for a decentralized financial system and incorporation of various centralized and decentralized exchanges. These exchange provide easy liquidity platforms and conversion of smart money from bitcoin to alternative coins. Every exchange constitutes two parts, one is the base currency and the second one is the quoted currency. While the base currency refers to any tradable coin, the quoted currency is mentioned on the right side of the trading pair. It basically provides the investment value of the base currency in comparison to its own worth. In other words, the price of XRP mentioned in the form of BTC provides an apple to apple comparison of the pegged coin XRP and it can be used as an indicator to see the XRP/BTC value compared to other coins.
Hence, there’re many benefits of using quoted currencies. Firstly, it provides consistent tracking of how the underlying currency is performing. Secondly, the quoted currency provides an apple to apple comparison to evaluate prices of various coins in the crypto market.
