Why Would Someone Choose to Write an Option Instead of Buying One?

An investor chooses to write an option primarily to generate income from the premium. This strategy is suitable for those who believe the underlying crypto's price will remain stable, move sideways, or move only slightly.

Writers profit from the time decay of options, as the value of the contract erodes as it nears expiration, which benefits the seller. They are essentially selling insurance to other traders and collecting the premium as their compensation, betting that the specific price movement the buyer is hoping for will not occur.