A Beginner's Guide to Polymarket Prediction Markets

What is Polymarket?

Polymarket is a decentralized prediction market platform on Polygon where you can trade on the outcomes of real-world events. Unlike traditional financial markets, prediction markets let you express views on specific events—from elections to crypto prices to world events.

How It Works

Binary Markets

Most Polymarket markets are binary—they resolve to either YES ($1) or NO ($0). If you buy YES at $0.65 and the event happens, you profit $0.35 per share.

Key Concepts

Understanding these key concepts is essential:

• •Shares: Each share represents a claim on a specific outcome
• •Price: Reflects the market's implied probability ($0.65 = 65% implied probability)
• •Position: Your exposure to an outcome (Long YES or Long NO)

Getting Started

Here's how to get started with Polymarket:

1. Start small - Begin with markets you understand
2. Diversify - Don't put all your capital in one market
3. Set limits - Decide your max position size before trading
4. Track your performance - Review your trades to learn and improve

Market Types

Polymarket offers markets across various categories:

• •Politics - Elections, legislation, government actions
• •Crypto - Bitcoin price, ETF approvals, protocol events
• •Sports - Game outcomes, championships
• •Current Events - News, world events, pop culture

Trading Tips

Follow these tips for better trading outcomes:

1. Research the underlying event thoroughly
2. Consider the time value of your position
3. Watch for new information that could move prices
4. Use limit orders to get better entries
5. Learn from top trader activity and whale tiers on platforms like Oddy

Conclusion

Prediction markets offer a unique way to express views and potentially profit from your insights. Take time to learn the mechanics, start small, and continuously improve your process.