I'd probably only use it if bumping resistance on a swing trade where the share price can drop like a rock for 10% before you figure out it is not going to break out. It's not a bad hedge to lose a 10% premium on a breakout that will give you a net positive 20% to 30% over and above the Put options premium if the break out is successful. Plus, if it pulls back after the break out you only lose a bit of the time decay in selling it back, but if it bounces off resistance and drops you can sell your position off and ride the Put down collecting over and above any losses you incurred in not selling your shares off at the top. This is a strategy you use when your assessment of the share price predicts these breakouts or fails will happen within a short time period, as is often the case in order to trap traders who didnt sell at the top or bought a fake out. This small window of time will help protect you against a time decay which is the only time I really buy options unless I'm buying Puts because I avoid shorting a stock with unlimited upside.
If you are long the straddle as the price of bit coin moves up and down your delta on the position changes. As it goes up you sell bit coin to balance the delta and then buy it back in as it comes down. Same on the other side but flipped. Ideally you are making money on the gamma scalps that offsets the theta from the long straddle. Each scalp locks in profits over the life of the trade those scalps cancel the theta. When you've cost based it down you can then let the straddle play for the bigger move when you are unhedged. If you short the straddle to start you are reverse gamma hedging and you're actually locking in losses with each trade. I prefer the long straddle gamma scalp personally. There are some videos on the web you can watch if you search for gamma scalping straddles. It's just with these bitcoin options I don't know how deep they are and liquid. It doesn't appear they are. Maybe they will be overtime. To be fair though gamma scalping isn't really a go to retail strategy. It's mostly reserved for market makers as paying retail commissions are a killer with the number of trades. Maybe this is irrelevant in crypto. I don't trade it. No commission but you are probably paying an entry spread through the platform. Hope this helps.