Cryptoassets
A trading terminal may display EUR/USD, BTC/USD and ETH/USDT next to one another. Similar-looking symbols do not establish that these instruments represent the same kind of asset or give the holder the same rights. Before interpreting a trade, identify the cryptoasset, the unit used to quote its price, and the product being traded: an asset in a spot market or a derivative contract.
This guide provides a classification for reading instrument specifications, transaction histories and software settings. It does not select coins to buy or compare trading strategies. Every numerical example is hypothetical and illustrates units and arithmetic, rather than current prices or trading performance.
Native coins, tokens and network names
A native coin is the blockchain's own asset. ETH, for example, is Ethereum's native cryptocurrency and is used to pay for operations on that network. Ethereum refers to the network and its technical environment; ETH refers to the asset. Treating those names as interchangeable can obscure which instrument a platform actually lists.
A token can be issued through a smart contract on an existing network. The ERC-20 standard defines a common interface for fungible Ethereum tokens. Compliance with that technical interface does not itself establish reserves, liquidity, ownership rights or the reliability of an issuer.
The coin-versus-token distinction is not a quality rating. For a particular token, identify the network and contract address rather than relying on its ticker alone. Short labels can overlap. A wrapped or bridged representation also requires its own checks: what it represents, how that representation is maintained, and what redemption actually entails.
Functional categories can overlap
Payment or network-use assets. Functions may include transferring value or paying for network operations. These functions do not imply a stable price in a fiat currency.
Stablecoins. Their mechanisms aim to maintain value relative to a reference, such as a currency. A peg is a design objective, not a guarantee. Reserves, price-support mechanisms, redemption terms and deviations from the reference matter.
Access or governance tokens. A token may enable a service or participation in specified votes. The label governance does not by itself confer company ownership or entitlement to profits.
Tokens carrying contractual economic rights. The rights depend on the issue documents and applicable rules. Calling something a token does not replace an examination of its legal substance.
An asset can combine functions. Recording the actual rights and limitations is more useful than assigning it one supposedly universal category. A classification used in one jurisdiction should not automatically be treated as the asset's legal status everywhere.
Reading a trading pair without mixing units
In conventional BTC/USDT notation, BTC is the base asset and USDT is the quote asset. The price expresses units of the quote asset per unit of the base asset. Coinbase's market-data documentation separates base, quote, price and quantity, a distinction that is also useful when inspecting a bot's log.
Suppose the execution price is 60,000 USDT per BTC and the filled purchase quantity is 0.02 BTC. Executed value before commission is 0.02 × 60,000 = 1,200 USDT. The quantity 0.02 and value 1,200 have different units. If an interface expects a spending amount in USDT, submitting 0.02 as though it were a base-asset quantity describes a very different operation.
BTC/USD and BTC/USDT are not interchangeable instruments: USD is a fiat currency, while USDT is a separate cryptoasset. ETH/BTC expresses ETH's value in BTC rather than directly in dollars. Comparing results in a reporting currency requires an identified conversion rate and the time at which that rate is measured.
A spot asset is different from a CFD
An ordinary unleveraged spot purchase exchanges the quote asset for the base asset. Where a venue holds the asset in custody, an account entry is different from independent control of private keys. Custody, transfer arrangements and the customer's claim against the operator depend on the service terms. A positive displayed balance does not alone prove that an on-chain withdrawal is available.
A contract for difference, or CFD, settles a price difference under the contract's terms. It does not give the buyer the corresponding coins to transfer on a blockchain. A BTCUSD symbol in a broker's terminal does not, by itself, identify a CFD. The specification and agreement establish the product; the chart's appearance does not.
For a CFD, check contract size, quantity units, settlement currency and applicable holding costs. An exchange-listed perpetual contract also differs from spot ownership, but it should not automatically be described using a broker CFD's rules. The separate perpetual-funding accounting guide explains how to inspect settled funding entries.
Availability depends on jurisdiction and client classification. Under FCA COBS 22.6, checked on 14 October 2026, firms within the rule's scope are prohibited from selling, distributing or marketing cryptoasset derivatives to retail clients within its stated application. The explanation here describes a product structure; it is not an offer of access.
Build an instrument record before interpreting software output
Identifier. Record venue, market and exact API symbol. For token transfers, also identify the network and contract.
Product. Specify spot asset, CFD or another defined contract. A ticker without this field is incomplete.
Units. Identify base and quote assets, quantity unit, contract size, volume step and price precision.
Accounting. Record the currency of fees and results, custody or collateral terms, and any applicable additional charges.
Reconciliation. Match the order identifier to executed quantity and price, then to position and balance changes.
Asset type does not determine order type. Continue with the limit and market order guide to inspect execution conditions. Software access requires a separate review of API-key permissions. An open position must also be distinguished from realised results when reading balance and equity.
To clarify a New Hope product's compatibility with a specific scenario, provide the venue, market type and instrument specification through the enquiry form. Secret keys are unnecessary for that initial description. Support for a particular asset, market or function needs confirmation for the product and its current version.
Related reading: from asset structure to trading automation
Identifying the coin, token and trading pair is a starting point. These readings provide technology context and separate questions about software and exchange connections.
Blockchain technology — Basic concepts of the distributed system.
The origins of ICOs — Historical context for token offerings.
Automated crypto trading systems — How data, rules and execution relate.
The purpose of crypto trading robots — An introduction to software automation.
Checking an NH Crypto connection — Exchange, account and market as separate conditions.
Crypto bots: the 2021 overview archive — The topic as presented in a historical publication.
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