Protective Put vs Put Option

A risk management strategy combining a long spot position with a purchased put option on the same asset; the put limits downside exposure below the strike price while preserving full upside above the strike minus the premium cost; the most defensible use of options for portfolio protection.

A financial contract giving the buyer the right, but not the obligation, to sell an underlying cryptocurrency asset at a specified strike price on or before expiry; buyer pays premium upfront; profit occurs when spot price falls below strike minus premium paid.