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What Is the Primary Advantage of Using a European Option for Hedging Long-Term Crypto Exposure?

The primary advantage is the certainty of the exercise date, which simplifies long-term planning and portfolio management. European options are often more liquid and easier to price for longer maturities.

Since the risk of premature exercise is eliminated, the hedging strategy remains stable until the intended expiration, reducing the complexity and transaction costs associated with potential early exercise.

How Do European-Style Options Simplify the Smart Contract’s Role Compared to American-Style?
Does the Style of Option Affect the Risk for the Option Writer?
How Does the “American” Vs “European” Style Affect This Choice?
What Is the Primary Difference between American and European Style Options in the Crypto Derivatives Space?