What Is the Primary Benefit of Using Options for Leveraged Exposure versus Direct Spot Trading?

Options offer leveraged exposure by allowing a trader to control a large notional value of the underlying cryptocurrency with a relatively small capital outlay (the premium). This means a small favorable price movement in the underlying asset can yield a high percentage return on the premium paid.

In contrast, direct spot trading requires the full capital for the position, making the percentage returns on capital lower for the same price movement. Options also limit the maximum loss to the premium paid for the buyer.