How do Polymarket and Kalshi work?
Polymarket and Kalshi are prediction markets with similar core mechanics but different implementations. Core mechanics: Both allow betting on future events.
Users buy shares in outcomes they predict will happen. Share prices reflect the market's probability assessment. Winning shares pay $1, losing shares pay $0.
Key differences: Technology - Polymarket uses cryptocurrency (USDC on Polygon). Kalshi uses traditional financial infrastructure. Regulation - Kalshi is CFTC-regulated.
Polymarket operates differently. Market focus - Polymarket has more geopolitical/trending topics. Kalshi focuses more on sports.
Access - Polymarket banned in more countries. Kalshi has different restrictions. Similarities: Both use shares that pay $1 or $0.
Both show probability through price. Both resolve markets based on real-world outcomes. Both pay fees through spreads.
Both have faced regulatory scrutiny. Both have issues with insider trading concerns.