What Is Polymarket?
Polymarket is the world's largest prediction market by trading volume, built on the Polygon blockchain. It allows users to trade on the outcomes of real-world events using USDC, a dollar-pegged stablecoin. The platform covers politics, crypto, sports, entertainment, and cultural events.
Getting Started
Account Setup
Visit polymarket.com and connect a Web3 wallet (MetaMask, Coinbase Wallet, or WalletConnect compatible). Polymarket also offers email-based login with a custodial wallet for users who don't have a crypto wallet.
Depositing Funds
Polymarket accepts USDC on the Polygon network. You can deposit directly from your wallet or use the built-in on-ramp to purchase USDC with a credit card or bank transfer. Minimum deposit is typically $1.
How Trading Works
Each market is a binary contract that resolves to Yes ($1) or No ($0). The order book operates as a central limit order book (CLOB) where market makers provide liquidity. You can place market orders (fill immediately at best price) or limit orders (set your own price).
Reading the Order Book
The bid is the highest price someone is willing to pay (buy). The ask is the lowest price someone is willing to sell at. The difference is the spread — tighter spreads mean better liquidity.
Fees
Polymarket charges dynamic fees based on the token's fee rate, typically around 1-2% per trade. Fees are applied when a trade executes and are taken from the proceeds. Fee rates vary by market and can be checked via the CLOB API.
Advanced Strategies
Market making: Place both buy and sell orders to earn the spread. Requires active management and understanding of implied probabilities.
Event-driven trading: Trade around news events, debates, or data releases that may cause rapid price movements.
Portfolio hedging: Use prediction markets to hedge against real-world risks in your portfolio.