Buying Calls vs Buying Puts: Simple Crypto Options Examples – Coincall

Learn the difference between buying calls and buying puts in crypto options trading, with simple BTC and ETH examples for beginners.

Crypto options can look complicated at first, especially when traders see terms like calls, puts, strike price, premium, expiry and breakeven.

The basic idea is much simpler.

A trader buys a call option when they want upside exposure.
A trader buys a put option when they want downside exposure.

Both calls and puts allow traders to build a view on the market with a defined upfront cost. This is one reason options are popular among crypto traders. Instead of entering a leveraged futures position with liquidation risk, an options buyer can know the maximum possible loss before entering the trade.

This guide explains the difference between buying calls and buying puts, using simple crypto examples.

What Is a Call Option?

A call option gives the buyer the right to buy an asset at a specific price before or at expiry.

In simple terms, traders buy calls when they expect the market to move higher.

For example, if BTC is trading at $60,000 and a trader believes it may rise to $65,000, they may buy a BTC call option. If BTC rises above the strike price, the call option can increase in value. If BTC does not rise enough before expiry, the trader may lose the premium paid for the option.

The important part is that the option buyer does not need to buy the full BTC position. They pay a premium for upside exposure.

This makes calls useful for traders who want to participate in a potential rally while keeping the maximum loss limited to the premium.

Simple BTC Call Option Example

Imagine BTC is trading at $60,000.

A trader expects BTC to move higher over the next week. Instead of buying BTC directly or opening a leveraged long position, the trader buys a BTC call option.

Example trade:

BTC current price: $60,000
Option type: Call
Strike price: $62,000
Premium paid: $1,000
Expiry: 1 week

This means the trader pays $1,000 for the right to benefit from BTC moving above $62,000 before expiry.

Now let’s look at possible outcomes.

If BTC rises to $66,000, the call option has value because BTC is above the $62,000 strike price. The option is $4,000 in the money. After subtracting the $1,000 premium, the trader’s net profit is around $3,000 before fees.

If BTC stays at $61,000, the option expires out of the money because BTC is below the $62,000 strike. The trader loses the $1,000 premium.

If BTC drops to $57,000, the trader still loses only the $1,000 premium. The loss does not increase just because BTC moved lower.

This is the main appeal of buying calls: upside exposure with a fixed upfront cost.

What Is a Put Option?

A put option gives the buyer the right to sell an asset at a specific price before or at expiry.

In simple terms, traders buy puts when they expect the market to move lower or when they want downside protection.

For example, if ETH is trading at $3,000 and a trader believes it may fall to $2,700, they may buy an ETH put option. If ETH falls below the strike price, the put option can increase in value.

Puts are often used in two ways.

The first use is directional trading. A trader buys a put because they expect the asset price to fall.

The second use is hedging. A trader already holds BTC, ETH or altcoins and buys puts to protect the portfolio against a possible drop.

This makes puts especially useful during uncertain market conditions, such as major macro announcements, sharp rallies, high volatility or important crypto-specific events.

Simple ETH Put Option Example

Imagine ETH is trading at $3,000.

A trader expects ETH may fall over the next few days. Instead of shorting ETH with futures, the trader buys an ETH put option.

Example trade:

ETH current price: $3,000
Option type: Put
Strike price: $2,800
Premium paid: $120
Expiry: 1 week

This means the trader pays $120 for downside exposure below $2,800.

Now let’s look at possible outcomes.

If ETH falls to $2,500, the put option has value because ETH is below the $2,800 strike price. The option is $300 in the money. After subtracting the $120 premium, the trader’s net profit is around $180 before fees.

If ETH stays at $2,900, the option expires out of the money because ETH is above the $2,800 strike. The trader loses the $120 premium.

If ETH rises to $3,300, the trader still loses only the $120 premium.

This is the main appeal of buying puts: traders can express a bearish view or protect downside with a known maximum loss.

Buying Calls vs Buying Puts: Key Difference

The difference between calls and puts comes down to market direction.

A call is usually used when the trader expects the price to rise.

A put is usually used when the trader expects the price to fall.

If a trader is bullish on BTC, they may buy a BTC call. If a trader is bearish on ETH, they may buy an ETH put.

The structure is similar in both cases. The trader pays a premium, chooses a strike price and expiry, and waits to see whether the market moves enough before the option expires.

The maximum loss for the buyer is the premium paid. The potential profit depends on how far the asset moves in the expected direction.

Why Traders Buy Calls Instead of Spot

Buying spot gives direct exposure to the asset. If BTC rises, the trader benefits. If BTC falls, the trader loses value on the full position.

Buying a call gives upside exposure with limited downside.

A trader may prefer buying a call when they want to:

Trade a short-term bullish view
Limit downside to a fixed premium
Avoid liquidation risk from leveraged futures
Use less capital upfront
Trade around a specific event or catalyst
Gain exposure to a move without buying the full asset

For example, a trader may believe BTC can rally after a major market event, but may not want to buy spot BTC at the current price. A call option allows the trader to participate in upside while defining the maximum loss in advance.

Why Traders Buy Puts Instead of Shorting

Shorting with futures can be effective, although it requires margin and active risk management. If the market rises sharply, the short position can face large losses or liquidation risk.

Buying a put gives bearish exposure with a fixed premium.

A trader may prefer buying a put when they want to:

Trade a short-term bearish view
Protect an existing crypto portfolio
Hedge against a market correction
Avoid liquidation risk from short futures
Define the maximum loss before entering the trade
Stay long spot while reducing downside risk

For example, a trader may hold ETH for the long term, yet expect short-term weakness. Buying a put can help reduce downside exposure without selling the ETH position.

Breakeven: The Price That Matters

For both calls and puts, traders should understand breakeven.

For a call option, the breakeven is usually:

Strike price + premium paid

If a trader buys a BTC call with a $62,000 strike and pays $1,000, the breakeven is around $63,000.

BTC needs to move above $63,000 by expiry for the trader to be profitable before fees.

For a put option, the breakeven is usually:

Strike price - premium paid

If a trader buys an ETH put with a $2,800 strike and pays $120, the breakeven is around $2,680.

ETH needs to move below $2,680 by expiry for the trader to be profitable before fees.

This is important because being right on direction is not always enough. The market also needs to move far enough and fast enough to cover the premium.

Common Mistakes Beginners Make

The first mistake is buying options without understanding expiry. A trader may be right about market direction, while the option still loses value if the move happens too late.

The second mistake is ignoring the premium. Expensive options need larger moves to become profitable.

The third mistake is choosing a strike price only because it looks cheap. Far out-of-the-money options cost less, although they also need a much larger move to become profitable.

The fourth mistake is using options like lottery tickets. Options are flexible trading tools, and they work best when traders understand the reason behind the trade.

When to Buy Calls and When to Buy Puts

A call may make sense when a trader expects upside and wants limited-risk exposure.

A put may make sense when a trader expects downside or wants portfolio protection.

Calls are often used during bullish setups, breakout expectations, strong momentum or positive event speculation.

Puts are often used during bearish setups, market uncertainty, portfolio hedging or expected volatility around negative catalysts.

Both tools can be useful. The right choice depends on the trader’s market view, time horizon, risk tolerance and cost of the option.

Final Thoughts

Buying calls and buying puts are two of the most basic ways to trade crypto options.

A call gives traders upside exposure. A put gives traders downside exposure. In both cases, the buyer pays a premium and the maximum loss is limited to that premium.

For beginners, this makes options easier to approach than many advanced strategies. A trader can start with a simple question:

Do I expect the market to move up or down?

If the view is bullish, a call may fit. If the view is bearish or protective, a put may fit.

On Coincall, traders can explore BTC, ETH and altcoin options, compare strikes and expiries, and use calls or puts to build a clearer trading plan.

Options do not remove risk. They help traders define risk before entering the trade.