Hello, it depends on the speed of the rotating wheel.
You will also need to use interrupts to catch the incoming signal.
One reading using interrupts takes by my experience around 200 us, which is 5 kHz.
Speed is measured in RPM, so by coincidence in your case RPM is equal to your frequency because you have 60 pulse per turn and 60 seconds per minute.
So if you run slower that 5.000 RPM you shoud be fine, but it also depends on other factors.
.Quadrature is a quite simple matter, I don't know much about libraries, but sure you will find plenty of tutorials.
One thing to consider is that the interrupt line is common to all digital I/O, so you will anyhow need to check inputs when receiving an interrupt.
Just by saving last state and comparing to new state you get your quadrature allright.
Please try to give a substantial answer. If you wanted to comment on the question or answer, just use the commenting tool. Please remember that you can always revise your answers - no need to answer the same question twice. Also, please don't forget to vote - it really helps to select the best questions and answers!