The base currency is the first currency that appears in a currency pair. On an exchange platform, one currency is always quoted in relation to another.

In a currency pair, the price of a cryptocurrency or some other asset is shown in the quote currency, indicating the amount of the quote currency a trader should pay in order to obtain some unit of the base currency.

Since currencies vary in capitalization, volatility, and usability, we use the concept of a base currency to compare the values of different cryptocurrencies and assets.