What is the difference between a party and a counterparty?

Excuse me, could you please clarify the distinction between a "party" and a "counterparty" in the context of financial transactions, especially in the realm of cryptocurrency and finance? As I understand, both terms are commonly used but I'm not entirely sure how they differ in their application and significance. Could you elaborate on the specific characteristics or roles that each entity plays in a transaction, and why it's important to differentiate between them?