What Is the Primary Reason an Investor Might Choose an American-Style Option over a European-Style Option?

An investor primarily chooses an American-style option for the flexibility to capture intrinsic value immediately or to manage risk. If the underlying asset, like a cryptocurrency, experiences a sudden, significant price move, the holder can exercise the option early to lock in profits or mitigate further loss.

This immediate optionality is a valuable tool for active risk management.