Skip to content
LAC

Prediction Markets Explained

Trade on real-world outcomes with crypto — how the markets work, reading the odds, the top platforms, and the legal picture.

5 steps · intermediate
  1. 1BeginnerWhat Are Prediction Markets? Polymarket, Kalshi, and How They WorkA plain-English guide to crypto prediction markets — how betting on real-world outcomes works, why crypto fits, the main platforms, and the real risks.
  2. 2BeginnerHow to Read Prediction Market Odds (Prices, Probability, and Spreads)Prediction market prices are probabilities in disguise. Learn how to read the odds, what the spread and volume tell you, and how payouts work.
  3. 3BeginnerPrediction Markets vs Sports Betting: What's the Difference?They look similar but work very differently. How prediction markets compare to sportsbooks on odds, who you trade against, range of topics, and the math.
  4. 4IntermediatePolymarket vs Kalshi: How the Top Prediction Markets CompareCrypto-native Polymarket versus US-regulated Kalshi — how they differ on custody, funding, regulation, fees, and which suits which kind of user.
  5. 5IntermediateAre Prediction Markets Legal? US Rules and Eligibility ExplainedA plain-English overview of how prediction markets are regulated, why eligibility varies by country and US state, and how to check the rules where you are.

Test what you learned

A quick 5-question quiz on the Prediction Markets Explained path. Score 4+ to pass.

  1. 1. What does the price of a 'Yes' share in a prediction market represent?

  2. 2. When a market resolves, what are the winning and losing shares worth?

  3. 3. What is a key difference between Polymarket and Kalshi?

  4. 4. How does a prediction market differ from a traditional sportsbook?

  5. 5. What is true about the legality of prediction markets?

0/5 answered

Get the plain-English crypto newsletter

One practical email. No hype, no spam. Unsubscribe anytime.

By subscribing you agree to our Privacy Policy.