A quote currency is the currency your trading bot uses to buy other cryptocurrencies and to sell them back into. Make sure you deposit funds in your chosen quote currency—otherwise, your bot won't have funds to execute trades.

Some crypto exchanges offer many different quote currencies, while others only offer one or two options. For users new to automated trading, we recommend starting with stable currencies such as USD, USDT, USDC, EUR, or other stablecoins. Stable currencies make it easier to track your actual profit since their value remains relatively constant.

Experienced traders may consider using BTC as their quote currency. However, since BTC is volatile, this approach can lead to quick wins or significant losses. When BTC rises in price, other cryptocurrencies typically decrease in BTC value, which may result in losses. Conversely, when BTC drops, other currencies often increase in BTC value, potentially generating profits.

Yes, your location can affect which quote currencies are available to you. However, your exchange typically determines which quote currencies you can use based on local regulations. For example, centralized exchanges operating in the European Union don't offer USDT as a quote currency due to regulatory restrictions. Always check your exchange's available quote currencies before setting up your bot.

A trading pair represents a combination of your quote currency and another cryptocurrency you can trade. For example, if you select USD as your quote currency, you can trade any cryptocurrency that has a USD trading pair—such as ETH/USD, SOL/USD, or ADA/USD.

The number of available trading pairs varies significantly between quote currencies. Major quote currencies like USDT, USD, and EUR typically offer the most trading pairs, giving you access to hundreds of different cryptocurrencies. Less common quote currencies may only support a limited selection of coins. More trading pairs mean more opportunities for your bot to find profitable trades.

Liquidity refers to how easily you can buy or sell a cryptocurrency without significantly affecting its price. High liquidity means there are many buyers and sellers, allowing trades to execute quickly at stable prices. Low liquidity can result in larger price swings and difficulty entering or exiting positions.

Generally, the most popular quote currencies offer the best liquidity:

Better liquidity means your bot can execute trades faster and at more predictable prices, which is especially important for strategies that rely on quick market movements or frequent trading.