What is Counterparty Coin (XCP)?

Introduction

Counterparty Coin is an extension for the Bitcoin. In addition to the possibility of creating new coins and trading all imaginable cryptocurrencies, Counterparty Coin allows every user to write their own digital agreements or programs, which are widely known as Smart Contracts. These are implemented and started after the XCP release on the Bitcoin-Blockchain.

These Smart Contracts are a revolutionary opportunity that offer endless design possibilities. By using the existing, decentralized Bitcoin blockchain and the script language of the Counterparty add-in, any contract scenario can be converted into simple programming text and the involvement of a third party becomes obsolete. The counterparty coin is traded using the XCP ticker.

XCP is used to ensure functionality in cases where the technical possibilities of Bitcoin are already exhausted. For example, the Counterparty Coin can be used to execute Smart Contracts. XCP is also the currency used to start voting on changes in the log. XCP coins were created by “burning” Bitcoin. During this process, Bitcoin was sent to a dead address so that the coins can no longer be used there. In return, there was XCP. By converting 2,100 bitcoins, more than 2.6 million XCPs were created in January 2014.

Counterparty Coin – The Counterparty Wallets

Counterparty Coin currently has three different wallets: one for desktop computers, one for mobile devices and one for Chrome. All these wallets provide counterparty script functionality and guarantee a high level of security for existing deposits. By using this wallet, all transactions are stored on the connected devices and never stored on company servers.

All information sent is encrypted by the servers and deleted after logging out, providing the highest level of security. The functionalities of the wallet include creating and managing coins based on the Bitcoin blockchain. In addition, profits are paid out in all compatible coins on this wallet. The conversion of coins into another currency is also possible. Furthermore, coins can be backed up using offline security protocols.

Who is behind the Counterparty Coin?

The XCP was created by the Counterparty Foundation, which is a non-profit organization. Their vision is a sustained growth and an open development environment, which is to be made possible by the counterparty platform. In addition, the future of Counterparty is to be secured by continuous innovations and the decentralization, standardization, openness and community participation is to be increased in the long term.

What about market capitalization of Counterparty Coin?

The current market capitalization of XCP is US$86.9 million, starting at approximately US$15 million. In particular, the XCP did not perform strongly in 2015, with market capitalization of US$ 1.5 million in January 2015. Since this low point, however, XCP has had a growth story. However, the price per XCP has also developed positively since the Initial Coin Offering. Initially, the price was USD 5.82 and is now trading at USD 33.22. XCP’s daily trading volume is approximately $1,499,000 and total supply is 2.6 million coins.

You can’t buy it directly for fiat on any exchange. You can choose the best coin exchange for your region and buy BTC there, then trade it for XCP on exchanges. Read here how you can quickly convert other coins to bitcoin and the other way around.

Our recommendation is always check if Coinbase is available for your country and buy there – as it is by far the safest and best regulated bitcoin exchange. Coinbase is trustworthy and has acceptable fees and it is a leading platform for buying BTC.

If Coinbase doesn’t support your country, use Cex.io – read how Cex.io works – it is a good Coinbase alternative. Coinmama is also safe exchange for buying cryptocurrenciesclick here to visit Coinmama.

If your country is not available on Coinbase – check for best Coinbase alternatives (such as Cexio and Indacoin – see here Indacoin exchange review) and buy BTC on one of those exchanges. You can always exchange your coins on Changelly (see if Changelly is legit place to trade crypto), instantly and directly to bitcoin.

Best and safest option to store your coins is to download an official coin wallet and store it on a hardware wallet (if it is supported) – our recommendation is just go and buy Ledger Nano S or Trezor Wallet or KeepKey, those are the safest options. You can read our articles on how to use Ledger Nano S wallet and where to buy it and Trezor Wallet Review or check out other top hardware bitcoin wallets here. You can also create a paper wallet – learn here more about crypto wallets. We have also compared top 3 hardware wallets: Ledger vs Trezor vs KeepKey.

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CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner.

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