Why Do American Options Typically Have a Higher Premium than European Options?

American options typically have a higher premium than European options because they offer the holder greater flexibility: the right to exercise the option at any time up to and including the expiration date. This early exercise feature provides an additional layer of value, especially for in-the-money call options on dividend-paying stocks (or assets with similar payouts).

Since crypto options generally do not have such payouts, the difference in premium is less pronounced, but the early exercise right still represents a greater potential for profit and thus commands a higher price.