What Is the Difference between a European and American Option in Crypto Trading?

The primary difference lies in the exercise timing. A European option can only be exercised on its expiration date.

An American option, however, can be exercised at any time up to and including its expiration date. While American options offer more flexibility, they are typically more expensive than European options, assuming all other factors are equal.

Most decentralized crypto options are European-style for simplicity.