Worried about "Unable to decode output address"

Well there is always counterparty risk, but Coindaddy and Tokenly have been great members of the community.

Yes.

Yes, that is the correct way. The problem is Counterwallet doesn’t allow the use of BTC (the reason is silly, more on that below).

BITCOIN is just an asset, of course.
https://coindaddy.io/search?network=xcp&q=bitcoin

If you want to sell for BTC (the real Bitcoin), it’s a bit complicated.

Why is BTC trading not possible in Counterwallet?
The DEx works by taking tokens into the protocol escrow. But BTC cannot be taken into protocol escrow, so if anything is bought/sold for BTC, the protocol expects BTC will be sent to the protocol escrow address within 18 blocks (this was the default) from the moment the BTC order is matched. So if you’re paying with BTC on the DEx, you have to watch out for notifications (can’t close Counterwallet) as long as your order is valid, and once it’s matched, you have to send BTC to the protocol (the other side doesn’t have to watch out for anything, their token is either XCP or some Counterparty asset and therefore in protocol escrow).

Most people don’t bother to read the docs, so they just leave, or they close Counterwallet, etc. and the bottom line is their orders fail, and they complain. After a while the developers simply removed the feature in late 2014.
So now some more experienced users want to use that feature again and some other developers have started adding it or intend to add it.

On the protocol level if hasn’t been disabled (it used to be called “BTCSell” or “BTC_Sell”, the use of BTC on the DEx) so it’s only a matter of interface. The Counterparty CLI still supports it, obviously, as well as the API.
For your users maybe Indiesquare wallet would be best (at least for those with iPhone’s) be good - I assume it has order matching notifications built in… Because if users buy your token with XCP, they need to perform BTC_Pay, which means they must not miss the matching notification.

Although if your token is already on offer (e.g. you’re selling 100 TKN for 0.1 BTC), their order would be matched within 10 mins or so, so you could simply tell them to check their wallet within 15 to 30 mins, and then transfer BTC because by then match should be made (as long as they offered price equal to or higher than you asked).

They can also watch the status outside of Counterwallet, such as on blockscan.com or https://xcpdex.com/ and send BTC once the order is matched and awating payment.