How Does the Concept of Leverage Apply to Buying Crypto Call Options?

Buying crypto call options offers significant leverage because a small change in the underlying crypto's price can lead to a much larger percentage change in the option's value. The buyer only pays a small premium for control over a large notional value of the underlying asset.

This allows a trader to achieve a high return on a small capital outlay if the price moves favorably, but it also magnifies the risk of losing the entire premium.