So the first investment has happened in this year, that I have done over the course of the past days, but only now I reveal it. I have bought Counterparty (XCP), with a decent % of my funds allocated to trading, about 8% roughly.

I have scaled in during the past days, because I don't like to buy all at once, for one it's too risky, and for other is that the market moves too much. Yes the size of my trades, shake the markets.

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Why Counterparty?

Well it fits my trading criteria and my trading strategy. And also it had a pretty bearish time, it dropped almost 15% in 1 day. What better time to buy, than when people are panicking and getting out. The losers are selling out in a bear market, while I am buying in waiting for the next bull market.

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Description

Counterparty is a smart contract system, directly built on the BTC blockchain, where you can host assets there. It is one of the earliest for that matter. The only direct competitor is OMNI/Mastercoin, but for various reasons I like Counterparty more.

It's actively being developed with 27 Github contributors (more than most top 10 coins have), and it's in the hand of trusted people. I think it came out in 2014, so it has a solid history, that can be seen on the price.

The inflation rate is also pretty conservative, 2.62 Million / 2.65 Million coins have already been mined out, so the monetary policy side is also good.

Perhaps the most visual side of Counterparty is Chris DeRose who is the community director of The Counter Party Foundation, who is also very active on Youtube, so you can watch him there.

For example here is one of his videos explaining XCP in relation to BTC:

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The Buzz

Jan 5 2017

Ecosystem Updates Bitcoin and Counterparty were recently on Shark Tank South Africa as a result of an investment made by South African entrepreneur Vinny Lingham. Augmentors will be raising funds in part by selling DATABITS, a token on the Counterparty network. Following the investment, Corin Faife wrote an article detailing the event. Below are some
http://counterparty.io/news/counterparty-update-1516

It looks like there is some money coming into XCP in the near future.

There are also upcoming game projects being built on it, like this one called "Age of Chains":
https://bitcointalk.org/index.php?topic=395761.msg17365521#msg17365521

Add that to the bottomed out price, and my price analysis, and you have an extremely undervalued coin, amongst the top 50, which is about to get some new funds poured into it. I'd say it's a solid investment in my opinion.

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The Profit

Well my effective average buy price (calculated for the entire position) is roughly 0.00247 BTC. And I am looking to sell at around 0.01 BTC. Which means that I am expecting a profit of 404.85% from this trade over the course of the next months.

I think there is still time left to buy, so if anyone wants to buy, I think now is the time, as later on it might be harder to position inside the trade. Perhaps I have bought too early, we might hit 0.002 before going up, perhaps not, but I believe the longterm bullish trend will be there.

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Credits:
https://poloniex.com/exchange#btc_xcp
https://counterparty.io/support/#logos

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Disclaimer: The information provided on this page might be incorrect. I am not responsible if you lose money using the information on this page! This is not an investment advice, just my opinion and analysis for educational purposes.

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