How Do Call and Put Options Differ in Purpose and Function?

Call and put options serve opposite market expectations. A call option gives the holder the right to buy a cryptocurrency at a specific price, making it profitable when the asset's price increases above the strike price.

Traders buy calls when they are bullish, anticipating a price rise. Conversely, a put option provides the right to sell a cryptocurrency at a set price, becoming profitable as the asset's price falls below the strike price.

Traders use puts when they are bearish, expecting a price decline or to protect their existing holdings from losses.