Buy, Sell, & Trade Using the Counterparty DEX

by | Mar 21, 2022 | Knowledge

This tutorial summarizes the process of buying, selling, and trading a Counterparty-issued asset (aka token/coin) using freewallet. By “Counterparty-issued” we mean “issued on the Counterparty platform by its users” as the Counterparty Project does not issue assets (XCP is the only asset that was issued by the Project).

First, prerequisites.  In order to buy an XCP-denominated asset, the user needs to complete the following steps:

a) Create a wallet if you already don’t have one (this one is easy, but make absolutely sure to write down your pass phrase). 

b) Send a small amount of BTC (e.g. 0.001) to your wallet address and buy some XCP from a dispenser.

Now, let’s learn how to execute a buy, sell, or trade using the Counterparty DEX.

1.  Navigate to the Exchange tab in freewallet.

2.  Type your desired asset pairing in the search bar separated by a forward slash. This is typically the asset name followed by XCP for buy and sell orders, or another asset name if you are seeking a trade (e.g. PHUNCHKINS/XCP or PHUNCHKINS/PHUNCHBUX).

3.  In the exchange view, populate the buy or sell order side based on your desired outcome. In the example below, our current balance is 21 PHUNCHKINS and we will sell 1 PHUNCHKIN token for 1 XCP. After entering and reviewing the details are correct, click Sell.

4.  The confirmation popup will allow you to modify the order expiration details and transaction fee. Input your preferred expiration information (leaving as default is typically fine) and select the transaction priority. The fee will automatically adjust based on the priority you select. Review the details once more and click Yes to submit the order.

Finally, if you need to cancel the order before it expires, navigate back to the exchange view, search for the same asset pairing as before, and scroll to the ‘My Open Orders’ section at bottom of the page in freewallet.  This section displays your open orders.  To cancel, click on the small red X located to the right of the order you wish to cancel.

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