Own the coin, sell a call above the current price, keep the premium. If price stays below the strike the option expires worthless and the premium is yours. Above it, your upside is capped at the strike and you keep the premium as compensation.
The general trade is the same as covered calls in equities. Three things differ here and they all point the same way.
You are selling into demand
Crypto books lean toward calls because the dominant customer expression is upside — the structure in call-heavy books in crypto. Selling calls therefore means supplying exactly what the crowd is bidding for, which tends to mean better pricing for the seller than the equity analogue.
It also places you alongside the one structural seller in this market: miners hedging production do a version of this trade for business reasons rather than for a view.
The premium is larger and so is the risk
Higher implied volatility means more premium. It also means a materially higher chance that price travels through your strike, so the trade-off is not a free improvement over the equity version — the compensation is larger because the thing being compensated for happens more often.
The honest framing is the one that applies to every premium sale: you are being paid to cap your upside, and the payment is fair when implied exceeds what will be realised.
What cash settlement changes
A crypto covered call is not really covered in the equity sense. Because settlement is cash rather than delivery, an in-the-money call is settled by paying the difference — your coins are never called away, they stay in your possession.
Practically similar, structurally different: you owe cash rather than delivering an asset, so the cash has to be there. And the coin you still hold has fallen in relative terms only if you measure against the capped outcome you agreed to.
The daily-expiry temptation
With an expiry every day, selling very short-dated calls repeatedly looks attractive because each one decays fast. It also means a very large number of chances for one of them to be the one that goes through the strike, and a single such event can undo a long run of collected premiums.