Cool so many great replies. I saw the wallet looks a little complicated to set up, but I can't imagine it's much more complex than
Nxt's wallet. The new online webwallet coming out seems almost exactly like a Nxt brainwallet.

When the online wallet launches tomorrow does it work standalone or do I need to have things installed on my computer for it to work?

I've also read you need to install bitcoind. I've always used Multibit for BTC so I don't have to download the blackchain.
Do I need to have bitcoind to use counterparty?

Also, is counterparty considered POW or POS?