What Is the Difference between an American and European Style Option in the Crypto Market?

The key difference lies in the exercise rights. An American-style option grants the holder the right to exercise the contract at any time between the purchase date and the expiration date.

A European-style option, conversely, can only be exercised on the contract's specific expiration date. In the crypto market, most options are European-style due to their simpler structure, which aids in pricing and risk management for market makers and DeFi protocols.