Freewallet.io User Manual
Freewallet.io User Manual
  • Getting Started
    • What is Freewallet?
    • What are the features of Freewallet?
    • Where can I access Freewallet?
    • Where can I access previous versions of Freewallet?
    • What is Tokenscan.io?
    • Why do I need small amounts of Bitcoin to do things in Freewallet?
    • What BTC fee should I use?
    • What is the Automatic Donation System? How do I turn it off?
    • What is an Asset/Token/NFT? How can I store them?
    • I want to trade a certain Asset, is it legitimate?
    • How to find the License Agreement
    • What else do I need to know?
  • Exploring Balances, History, Exchange and Dispensers
    • Address Balances
    • Address History
    • Viewing Tokens
    • Exploring Token Information and Enhanced Asset Information
    • Understanding Dispenser Markets
    • Buying XCP and User Created Tokens from a Dispenser
    • The Decentralized Counterparty Exchange (DEx)
    • Understanding Exchange Pairs
    • Buying and Selling XCP and Tokens on the DEx
    • Understanding BTCpay and BTC/TOKEN on the DEx
  • Freewallet Functions
    • Creating a Wallet
    • Locking and Unlocking Your Freewallet
    • Viewing, Creating and Importing Addresses
    • Show a QR Code for your Address
    • Sending and Receiving BTC
    • Sending / Receiving XCP and User Created Tokens
    • Displaying the Seed Phrase and Private Key of your Address(s)
    • Using the Multi Send function
    • Create a Counterparty Token (NFTs and FTs)
    • How to Change Token Properties
    • Changing the Token Description
    • Issuing more Token Units
    • Resetting Your Token Issuance
    • Locking Your Token Issuance
    • Transfer Token Ownership
    • Destroying Tokens
    • Paying Dividends to Token Holders
    • Voting with Tokens
    • Broadcast information on the Bitcoin blockchain
    • Signing a Message Using Freewallet
    • Signing a Transaction Using Freewallet
    • Using the Sweep Function
    • Setting up a Dispenser
    • Closing a Dispenser
    • Cancelling Exchange Orders
    • Starting an Exchange Pair that has no orders up yet on the DEx
    • Minting Open Fairmints
  • Common Questions Using Freewallet (FAQ)
    • What if you make a mistake?
    • Where can I see my current version?
    • How do I check my Freewallet Server settings?
    • How do I use the Debug function on Freewallet?
    • Can I use the Counterparty/Bitcoin Testnet in Freewallet?
    • Can I burn BTC for XCP?
    • What’s a Stamp?
    • What’s an Ordinal?
    • If Tokenscan is down for maintenance, can I still access my funds?
    • Why is there more than one input on my BTC transactions?
    • Does Freewallet support two-factor authentication?
    • Can you lock a Token description?
    • Can I run my own Counterparty server?
    • How do I use Freewallet to mint an Emblem Curated Vault?
    • How do you create a Burn Address for use on Counterparty?
  • Troubleshooting / Issues
    • I sent BTC (or a Token) to Freewallet, why doesn't it show up?
    • Why can't I see my assets I own or created with 0 issuance?
    • "Error While Trying to Broadcast Transaction"
    • "Failure to send not enough BTC in wallet"
    • My Freewallet Exchange/Dispenser tab is resetting the data when I try to sort by BTC Price?
    • "Public key was neither provided nor published in blockchain."
    • I logged in and see none of my assets but I see them on tokenscan!
    • Help! I used too small of a fee and my transaction is not confirming!
    • I sent/dispensed an XCP asset to a Wrapped Segwit Address (address beginning with "3")
    • I sent/dispensed an XCP asset to a Taproot Address (an address that starts with "bc1p")
    • I updated Freewallet and can only see my first 20 addresses! How can I get them back?
    • My second transaction on an MPMA (Multi-send) is not getting confirmed and giving me an error
    • Freewallet gave me a TX link but Tokenscan says "Transaction not found on tokenscan"
    • Error composing dividend transaction via API: ['zero dividend']
    • My MacOS/Windows is saying Freewallet is not verified by the app store. What should I do?
    • Counterparty API Communication Error!
    • What is a Counterparty API Error?
    • Stuck on "Checking Data Encoding Fees"
    • Constructed transaction does not parse correctly
    • My transaction is too low of an "Effective Fee Rate"
    • Error Composing Dispenser TX - Balance History
    • I entered my created password and stuck on "You will need to unlock..."
  • Getting Support
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  1. Getting Started

Why do I need small amounts of Bitcoin to do things in Freewallet?

PreviousWhat is Tokenscan.io?NextWhat BTC fee should I use?

Last updated 6 months ago

Counterparty builds directly on top of the Bitcoin network, and every Counterparty transaction is a Bitcoin transaction as well.

This means that Counterparty transactions are the same as Bitcoin transactions, with some information attached through the OP_RETURN function. Adam Krellenstein, co-founder of Counterparty, wrote about this functionality and labelled Counterparty as a 'metaprotocol' on top of Bitcoin in the .

Because of this, Counterparty transactions using Freewallet MUST pay a small BTC fee to the Bitcoin miners for each Counterparty transaction. Beyond being a sign of commitment to the health of the Bitcoin network, this allows Counterparty transactions to be given a high priority and be confirmed quickly while maintaining the same security that Bitcoin has.

Every Counterparty transaction is a bitcoin transaction with more information encoded into the OP_RETURN function. Many internal Counterparty transactions such as asset creation, issuance change, token locking etc. are transactions “sent to yourself” with this Counterparty information on layered on top of it.

If you are looking to save bitcoin it is recommended to use a Segwit addresses instead of Legacy if you plan to do many transactions.

The detailed OP_RETURN data can be seen on Counterparty block explorers, while all BTC transactions can be viewed on a BTC block explorer. Freewallet specifically shows the OP_RETURN data from the Counterparty block explorer. On xchain, all Bitcoin addresses are linked to the BTC data on the Bitcoin network.

To learn more about viewing accessing your different types of addresses in Freewallet, check out: .

If you are looking to get a function done quickly it is needed to use the recommended high fee (or even higher) for the Bitcoin network to confirm it quickly. In the event you are not sure what BTC fee to use, please reference the section of the user manual.

tokenscan.io
Viewing, Creating and Importing Addresses
What BTC fee should I use?
Counterparty Whitepaper
From: "Counterparty An Extension to Bitcoin by State-Machine Replication"
A Counterparty transaction with OP_RETURN data attached (representing a named token creation transaction)
The same transaction as above, but viewed on tokenscan.io