In volatile crypto markets, options can be used for hedging. A long - put option can be purchased to protect against downside risk. For example, if an investor holds a large amount of Bitcoin and is worried about a price drop, buying a put option gives them the right to sell at a pre - determined price. This limits the potential losses. Additionally, a short - call option can be sold to generate income, which can offset some of the costs associated with buying the put option. However, options trading requires a good understanding of the market and the associated risks.