When it comes to prediction markets, traders engage in a unique form of betting where they wager on the verifiable outcomes of real-world events within specific time frames. This popular form of trading involves purchasing “yes” or “no” shares in a particular outcome. If the prediction ultimately proves to be true, each share pays out $1, while unsuccessful predictions result in a payout of zero.
One of the key features of prediction markets is the ability to use various forms of currency for trading. For instance, on platforms like Polymarket, bets are settled in USDC, a stablecoin that is directly pegged to the US dollar. In contrast, other markets such as Kalshi and PredictIt provide payouts in traditional US dollars.
Whether you are new to prediction markets or a seasoned trader, the thrill of predicting real-world events and potentially earning profits adds an exciting dimension to the world of trading.
