Polymarket Review
Polymarket is a leading decentralized prediction market platform built on blockchain technology. It’s the largest and most popular prediction market, especially for those who want to bet real money on U.S. elections.
Although Americans are technically banned from trading on the platform, Polymarket operates with minimal regulation, making it a controversial player in the nascent industry. In any case, customer privacy is paramount to Web3 companies, and Polymarket is no different.
Here’s what you need to know about Polymarket’s complicated place among the top prediction markets.
What is Polymarket?
Polymarket is a prediction market platform that trades in cryptocurrency. It services Web3 users who value the package of benefits that crypto markets offer, like privacy and irreversible, transparent transactions.
Because Polymarket is built on crypto transactions, it offers markets on topics ranging from news events to election markets. It’s unbound by the CFTC regulations that limit prediction market subjects.
Discussion about Polymarket often tends toward the jargon of Web3 and cryptocurrency. Fundamentally, it’s a company that offers prediction markets. The technicalities shouldn’t distract from the company’s straightforward offering.
How does Polymarket work?
Polymarket works like most prediction market companies. Traders create accounts, deposit funds, then begin trading.
However, Polymarket requires its users to deposit and withdraw with USD Coin (USDC), a cryptocurrency tied to the U.S. dollar. That means users need a crypto wallet like MetaMask or Coinbase Wallet to deposit and withdraw on Polymarket. That also means traders will have to navigate gas fees, which are variable processing fees that Ethereum charges.
Once you’ve made your deposit, trading is like every other prediction market platform. Event contracts are priced between $0.01 and $0.99, and contracts on correct predictions pay $1 each. The contract’s price is the probability that it will pay out according to the market. You can either hold your contracts until the market is resolved or sell when the price moves in your favor.
What are the benefits of trading on Polymarket?
One of Polymarket’s greatest benefits is its variety of markets. It offers the most popular markets, like election and other political betting markets. However, Polymarket also offers odds on sports outcomes, like its Olympic markets on who will win popular events. Unbound by American regulations, Polymarket can offer similar markets as regulated sportsbooks in the United States.
The platform’s international politics markets are also unique. , There are prediction markets on whether Lebanon’s airport in Beirut will close or whether Venezuela’s president will be ousted. These geopolitical events aren’t easily found on other prediction markets.
Polymarket users also benefit from the best things about cryptocurrencies. Users can maintain their anonymity if they choose, which can improve the independence of thought that makes great prediction markets.
Cryptocurrency users also benefit from trading terms and clear settlement terms that are publicly available on Polymarket’s blockchain. Records of contracts, their terms, and their settlements are kept automatically, providing the documentation required of regulated financial firms.
How to register and trade on Polymarket
Step 1
Polymarket itself is easy to use. If you’re new to Web3 and crypto, the technical details may trip you up. You’ll need a crypto wallet like MetaMask or Coinbase Wallet to transfer funds. American traders will also need a VPN like ProtonVPN or Surfshark to use an IP address from another country.
Using your crypto wallet to register for Polymarket is easy. Click the Coinbase Wallet signup option, then use your phone to scan the QR code from the Coinbase Wallet app. Once they’re linked, you’ll be prompted to enter your email. After that, your registration is complete.
Step 2
Next, you must deposit USD Coin. The easiest way is to click the QR code icon and scan it from your crypto wallet. Make sure your USD Coin is sent on the Polygon network. If you send your USD Coin elsewhere, it won’t make it to your Polymarket account. Executed correctly, your money will be available in a minute or two.
If you’re an American, you may get a screen saying that deposits aren’t available in your region. Polymarket prohibits deposits from Americans. The company took this step after its 2022 fine to avoid further conflict with the CFTC. Download a VPN to get an IP address from another country. We used the Netherlands.
Step 3
Once you’ve made your deposit, you can begin trading. Go to the home page and select a market you’re interested in. You’ll get the option to trade “yes” or “no” on your chosen contract. Traders can also place market, limit, or AMM trades. Once you’ve selected your option and the amount of money you’d like to spend, you can confirm your order. There’s no submission or confirmation screen. There’s a brief animation that disappears quickly. To find your trades, you can look in the “history” and “positions” tabs in your portfolio.
Prediction markets are new platforms where ordinary people can bet on the outcomes of anything. On Polymarket, you can bet on the Oscars, who will win the White House, and so much more.
How to trade safely on Polymarket
Trading safely on Polymarket involves guarding your crypto information and avoiding problem gambling behaviors on a trading platform.
Everyone knows to keep their login and financial information safe. It’s one of the basic tenets of living online. However, crypto information has high stakes. Your wallet address on the blockchain is yours alone. It’s how you send and receive crypto anonymously. You may not be known by name, but you have that crypto address that identifies and is tied to you. It’s as if your Social Security Number also controlled your bank transactions.
Consequently, if someone hacks your crypto wallet, they can take control of all your cryptocurrency. Because cryptocurrency is unregulated, there’s no one to dispute transactions with. All the blockchain sees is your identity sending crypto to someone else. The permanent record does not accept fraud claims. For better and for worse, it’s not structured to.
As for trading on Polymarket, you should have some knowledge about the markets you’re trading in. Nothing can reduce the volatility and unpredictability of event contracts, but you can avoid taking unnecessary risks and absorbing unnecessary losses. Don’t chase your losses, and don’t trade more than you can afford. Trading addiction is just as real as gambling addiction, and it’s no less devastating.
Polymarket fees
Polymarket doesn’t currently charge fees. However, there’s a fee unique to crypto transactions that may surprise new users.
Gas fees aren’t charged by Polymarket. They’re processing fees on the Ethereum network. It’s a fee charged to reduce the number of transactions on Ethereum to avoid overloading the network. Gas fees vary depending on the amount of activity on the network.
These fees can be avoided by doing transactions over Polygon, another network used to take the pressure off Ethereum. Traders can use Polygon through eligible crypto wallets, like Coinbase and MetaMask.
Navigating gas fees and the other peculiarities of cryptocurrency and Web3 will take practice for the uninitiated. They’ll come easily once you experiment with them yourself.
Polymarket deposit and withdrawal options
Polymarket’s deposit options include deposits from crypto exchanges and crypto wallets. Users can transfer funds directly from an exchange that holds their crypto or a wallet where it’s stored. Your Polymarket account will have a long address where your crypto can be sent.
Similarly, you’ll withdraw from Polymarket to your wallet or exchange. Both places have an address that you can copy and paste in Polymarket to make the withdrawal. If you want to convert your USD Coin to cash, you’ll also do that from your wallet or exchange.
Transacting through wallets and exchanges is part of the early Web3 infrastructure. It may not be convenient, but these deposit and withdrawal methods give you access to one of the most prolific prediction market companies available today.
Is Polymarket a legit company?
Yes, Polymarket is legit. Polymarket is a registered U.S. business. It raised $45 million from Founders Fund, Peter Thiel’s venture capital company. It’s subject to the regulations associated with a private American business.
However, it is neither a gambling nor a regulated financial company. It requires no gambling licesnes, and Polymarket is not yet regulated by the CFTC. Since Polymarket’s $1.4 million fine in 2022, it blocks U.S. customers from trading on it.
Polymarket is a non-traditional company, but that’s because it’s built around Web3 infrastructure. It’s a safe platform and a thriving business. Traders should feel safe using it.
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