Polymarket is a decentralized online prediction platform where users bet on real-world events using cryptocurrency. It runs on the Polygon blockchain and uses the USDC stablecoin for all transactions.
The platform shows market-based probabilities for events like elections, sports outcomes, economic policy changes, and more. People trade “Yes” or “No” shares, and winning shares always pay $1 while losing shares pay $0.
Polymarket Works Like a Crypto-Powered Forecast Market
On Polymarket, traders do not bet against a bookmaker but instead against each other. Every market displays live prices, which reflect the crowd’s belief about the likelihood of an outcome.
Traders can buy shares for “Yes” or “No” outcomes at prices between $0.01 and $0.99. The closer a price is to $1, the higher the implied odds for that outcome.
Example:
- If a “Yes” share is $0.65, the market sees a 65% chance that the event will happen.
- If the event occurs, that share becomes worth $1.
- If not, it becomes worthless.
You can trade in and out of markets before they close, and prices change in real-time based on supply and demand.
Polymarket uses Polygon, a Layer-2 scaling solution for Ethereum, which allows faster and cheaper transactions. All trades are secured and recorded on-chain using smart contracts.
The platform supports USDC, a stablecoin pegged to the U.S. dollar, which helps avoid crypto price volatility. Users must connect a Web3 wallet to deposit and withdraw USDC.
Users Can Trade Without KYC or Central Approval
Polymarket does not require users to complete Know Your Customer (KYC) checks. Instead, users connect a non-custodial wallet, like MetaMask, to begin trading.
This setup gives users complete control over their funds while protecting privacy. However, users are responsible for managing their own private keys securely.
How Resolution and Payouts Work
Polymarket uses a rules-based system to determine the result of each market. Market rules are published in advance and define exactly what counts as a win.
When the event ends, someone submits a resolution using UMA’s Optimistic Oracle. If no one disputes the outcome, shares are settled accordingly.
In case of disagreement, the community can post a challenge by staking USDC. UMA token holders then vote on the outcome, and the final result is enforced on-chain.
Polymarket Offers a Wide Range of Markets
Users can bet on politics, sports, crypto prices, weather, economic policies, and more. During major global events, trading volume often spikes as users rush to update their positions.
Popular examples include:
- U.S. Presidential Election winner
- Will Bitcoin hit $130,000 this month?
- Will a certain law pass by a given date?
- Who will win a major sports tournament?
Market prices are constantly updated as traders react to news and data.
How to Get Started on Polymarket
Anyone with a crypto wallet can use the platform. The process is simple:
- Connect a Wallet – Link a Web3 wallet, such as MetaMask, to Polymarket. This wallet gives you full control over your funds and transactions.
- Deposit Funds – You can fund your account in several ways:
- Transfer Crypto: Deposit instantly using multiple supported cryptocurrencies and networks (like Polygon, Ethereum, Optimism, and Arbitrum).
- Deposit with Card: Use your Visa or Mastercard to add funds (up to $50,000 limit, typically 5 minutes to process).
- Deposit with PayPal: Add up to $10,000 in about 5 minutes via PayPal.
- Choose a Market – Browse active markets and select the event you want to trade on.
- Buy or Sell Shares – Purchase “Yes” or “No” shares based on your prediction of the outcome.
- Withdraw Profits – When you’re ready, withdraw your funds directly to your wallet.
No traditional account or KYC verification is required for most users your wallet is your identity, and you retain complete control of your assets at all times.
Polymarket Doesn’t Charge Trading Fees
Polymarket does not charge any trading, deposit, or withdrawal fees. You can buy and sell shares without paying a platform fee. However, users may still incur blockchain network costs (gas fees) when moving funds on-chain.
For some deposit methods, especially when sending USDC from external wallets or exchanges, a relayer fee may apply. This fee is typically $3 plus network costs, or 0.3% of the deposit amount, whichever is higher. These fees go to third-party relayers, not to Polymarket itself.
Depositing directly with USDC on the Polygon network is usually the most efficient and lowest-cost method.
Users Can Also Provide Liquidity
Polymarket depends on liquidity providers to keep its markets active and trading smoothly. Anyone can become a liquidity provider (LP) by depositing USDC into a market’s liquidity pool.
Liquidity providers earn rewards or a share of trading activity for helping maintain efficient markets and reducing price slippage. This incentive system ensures that users can always enter or exit positions quickly, even during high-volume events.
Real-World Impact and Use Cases
Polymarket has gained popularity during key political moments. For example, during the 2024 U.S. elections, Polymarket became one of the largest markets in crypto.
The platform showed accurate odds weeks before traditional media predicted the withdrawal of Joe Biden. Traders placed millions of dollars on various outcomes.
At one point, over $3.3 billion had been wagered on the 2024 election alone.
Legal Challenges and Regulatory History
Polymarket has faced scrutiny from global regulators. In 2022, the U.S. Commodity Futures Trading Commission (CFTC) fined the platform $1.4 million for running an unregistered derivatives exchange.
Since then, Polymarket has blocked access to U.S. users. However, in 2025, Polymarket acquired QCEX, a CFTC-licensed exchange, enabling it to seek a compliant return to the U.S. market.
Authorities in France, Belgium, Poland, and Singapore have also taken action against the platform, restricting its access due to gambling laws.
Investment and Growth Highlights
In May 2024, Polymarket raised $70 million from investors, including Vitalik Buterin and Peter Thiel’s Founders Fund. The platform used this capital to expand markets and improve user tools.
In October 2025, Intercontinental Exchange (ICE) announced a deal to invest up to $2 billion in Polymarket. This valued the company at $8 billion and marked a shift toward institutional adoption.
Active Traders and Volume Growth
Polymarket’s monthly trading volume reached nearly $2 billion in October 2024. By mid-2025, it saw more than 286,000 active users monthly.
The platform often leads global prediction markets in volume, especially during political campaigns or major crypto events.
Polymarket vs. Competitors
| Platform | Decentralized | U.S. Access | KYC Required | Fees | Token |
| Polymarket | Yes | No (limited) | No | Low | No |
| PredictIt | No | Yes | Yes | High | No |
| Augur | Yes | Yes | No | Varies | Yes |
| Kalshi | No | Yes | Yes | Low | No |
Common Strategies on Polymarket
Buy early, sell later: Enter markets early at lower prices and sell if odds shift in your favor before resolution.
Hold to expiration: If you’re confident, hold until settlement for full $1 payout per winning share.
Watch whales: Large trades can move markets; track big wallets to spot sudden sentiment shifts.
Check rules: Always read resolution criteria to avoid surprises during market settlement.
Use partial exits: Lock in profits by selling some shares early while keeping exposure.
Arbitrage opportunities: Take advantage of price gaps between related markets or between Polymarket and platforms like Kalshi.
News-driven trades: React quickly to breaking news or polls to buy undervalued shares.
Cross-platform arbitrage: Buy low on Polymarket and sell high on regulated platforms when prices diverge.
Risks and Things to Watch Out For
Polymarket gives a new way to interact with real-world events, but users should be aware of:
- Market volatility: Prices can change fast, especially near key events.
- Resolution disputes: If the result is unclear, a dispute process can delay payouts.
- Legal access: Check whether the platform is allowed in your country.
- On-chain fees: While trading is free, network gas fees may apply.
- Private key loss: You control your wallet; losing access means losing your funds.
Why Polymarket Is Growing Fast
Polymarket has attracted both retail users and institutional interest due to its simplicity, transparency, and real-time insights.
Media outlets and researchers often reference its odds. It reflects real-time public sentiment better than polls.
As of 2025, Polymarket continues to lead the decentralized prediction market space, offering high liquidity and wide participation during global events.
Popular Market Examples on Polymarket
- U.S. Presidential Election 2024 – Over $3.3 billion in trades
- Bitcoin October Price Market – $4 billion volume
- Euro 2024 Winner – $2.8 million traded
- Paris Olympics 2024 Polls – Multiple markets for medal counts
What Sets Polymarket Apart
- Built on blockchain
- No central party controls outcomes
- Users trade anonymously via wallets
- Fees are minimal
- Data is open and viewable on-chain
- Smart contract governance reduces manipulation
Polymarket offers a unique mix of real-world forecasting, blockchain technology, and decentralized finance. As regulations shift and adoption rises, the platform continues to evolve with both user growth and institutional support.
