Put Option
The right to sell an asset at a set price — crypto's insurance policy against a crash.
A put option gives its buyer the right to sell an asset at a fixed strike price before expiry, gaining value as the asset falls below that strike. Its most common use is protective: a holder buys puts as insurance, capping downside on a position while paying only the premium if prices stay up.
Put sellers collect premium and bet the price stays above the strike — profitable in calm or rising markets, painful in crashes. The cost of puts spikes precisely when fear does (via rising implied volatility), so insurance is cheapest when you least feel you need it. That timing paradox is one of the first hard lessons in options.