Coinspeaker Why Should You Day Trade Ethereum?While Bitcoin – and the blockchain technology behind it – are the trailblazers of the crypto world, there are now many cryptocurrencies competing for supremacy, foremost amongst these being Ethereum.Why is Ethereum so Important in the Crypto Sphere?Launched 6 years after Bitcoin, Ethereum is currently the second-largest and most widely accepted and traded cryptocurrency. Why? Because the Ethereum network is an ecosystem in itself, providing very promising solutions to wide-ranging fields, from finance to health.While Bitcoin can only be described as a peer-to-peer decentralized payment system, the Ethereum network (and its currency Ether) is more than just a payment system or a digital currency.While both are based on blockchain technology, the Ethereum network went further, introducing the world to “smart contracts”. These contracts represent a piece of code, written to dictate the way online transactions happen within an application.With smart contracts, Ethereum offers endless autonomous possibilities within the Ethereum blockchain network for governments, institutions, and businesses around the world wanting to incorporate these applications into their day-to-day activities.The fact that you can build a decentralized app (dApp) on top of the Ethereum network has catalyzed the crypto-market over the last few years, leading many to describe Ethereum as a leading driver in the crypto-industry.As more and more people believe that digital currencies will become an important part of our financial system in the upcoming years, more money is being invested in cryptocurrencies every day.Day Trading Ethereum CFDs vs. Trading Ethereum through an ExchangeThe crypto market is a quite new and unregulated market, whose price fundamentals are still unclear. This uncertainty often triggers large price movement in both directions (upwards and downwards).At the time of writing, for instance, Ethereum has gained more than 69% since January but lost more than 22% this month. While this volatility is great for day traders, as they can seize upon these trading opportunities via CFDs, it is not great for people holding Ethers in a wallet for the long-term, as the tokens may yet prove to lose value over time.Ethereum token ownership is the big difference between trading Ethereum via CFDs and buying and selling Ethereum through an exchange. With CFDs, you do not own Ethereum tokens, you’re only taking advantage of the price changes of the digital currency. However, when you buy and sell Ethereum through an exchange, you own the tokens and you need to store them in a wallet (paper, hardware, online, etc.).Trading Ethereum CFDs has other advantages, such as leveraged/margin trading, the possibility of profiting from both rising and falling markets, and trading within a regulated environment with trader protections, such as negative balance protection.How to Choose the Right Broker to Day Trade Ethereum?When using CFDs on Ethereum and other cryptocurrencies, you need to be sure you’re using a reliable broker that provides the best trading conditions for your trading style.With easyMarkets, day trading Ethereum is easy and safe – you can take advantage of market volatility with great charting and trading tools, while protecting your capital with money and risk management tools, such as free guaranteed stop loss, and fixed spreads. easyMarkets is licensed in Cyprus and Australia.Remember that in choosing the right broker for your day trading strategy, you should first determine whether or not it is licensed and regulated (in the more territories, the better). Then, verify how available and knowledgeable the customer service is. Finally, test the trading platform to be sure it suits your needs (technical indicators, charting and drawing tools, variety of orders, etc.).Why Should You Day Trade Ethereum?