Polymarket vs Kalshi: Quick Reference Step-by-Step Guide

# Polymarket vs Kalshi: Quick Reference Step-by-Step Guide **Polymarket** and **Kalshi** are the two most talked-about prediction market platforms in 2025 — and choosing between them comes down to where you live, how you want to fund your account, and what kinds of events you want to trade. Polymarket runs on blockchain with crypto deposits and no U.S. access (officially), while Kalshi is a CFTC-regulated U.S. exchange accepting bank transfers. This guide breaks down every key difference, step by step, so you can make an informed decision fast. --- ## What Are Polymarket and Kalshi? Before diving into comparisons, it helps to understand what each platform actually is at its core. **Polymarket** is a decentralized prediction market built on the **Polygon blockchain**. It launched in 2020 and lets users trade on the outcomes of real-world events — elections, sports, economics, crypto prices, and more — using **USDC (USD Coin)**. Because it operates on a blockchain, it's non-custodial: you control your own wallet. However, it's geographically restricted for U.S. users due to regulatory reasons. **Kalshi** is a **CFTC-regulated event contract exchange** based in the United States. It launched publicly in 2021 and became the first legally operating prediction market for American retail traders. Kalshi accepts USD deposits via bank transfer or debit card, and trades settle in dollars. It covers politics, economics, weather, and more. Both platforms let you buy "Yes" or "No" shares on whether a specific event will happen. If you're right, your shares pay out $1.00 each. If you're wrong, they expire worthless. --- ## Polymarket vs Kalshi: Side-by-Side Comparison Table | Feature | **Polymarket** | **Kalshi** | |---|---|---| | **Regulatory Status** | Unregulated (decentralized) | CFTC-regulated U.S. exchange | | **Available to U.S. Users** | No (geo-restricted) | Yes | | **Currency** | USDC (crypto) | USD (fiat) | | **Deposit Method** | Crypto wallet (MetaMask, etc.) | Bank transfer, debit card | | **Minimum Deposit** | No official minimum | ~$10 | | **Trading Fees** | 2% on winnings | 1–7% maker/taker fee | | **Blockchain** | Polygon (Ethereum L2) | Centralized (no blockchain) | | **Market Categories** | Politics, crypto, sports, science | Politics, economics, weather, finance | | **Liquidity** | Higher (larger user base) | Growing rapidly | | **KYC Required** | No | Yes (full ID verification) | | **API Access** | Yes (public) | Yes (for institutional users) | | **Mobile App** | Web only (mobile browser) | iOS and Android app | --- ## Step-by-Step: How to Get Started on Polymarket Here's exactly how to begin trading on Polymarket from scratch: 1. **Set up a crypto wallet.** Download **MetaMask** or use a **Coinbase Wallet**. Create your wallet and securely save your seed phrase. 2. **Buy USDC.** Purchase USDC on a crypto exchange like Coinbase, Binance, or Kraken. You need USDC on the **Polygon network** — not Ethereum mainnet. 3. **Bridge to Polygon (if needed).** If your USDC is on Ethereum, use the Polygon Bridge or a supported exchange that lets you withdraw directly to Polygon. 4. **Connect your wallet to Polymarket.** Go to polymarket.com, click "Connect Wallet," and select MetaMask or your preferred wallet. 5. **Browse markets.** Use the search bar or category tabs (Politics, Sports, Crypto, Science) to find events you want to trade. 6. **Place a trade.** Select "Yes" or "No," enter the dollar amount, review the implied probability and potential payout, then confirm the transaction. 7. **Monitor your positions.** Check your portfolio tab to track open positions and pending payouts. 8. **Withdraw winnings.** Winning positions settle automatically in USDC back to your wallet. You can then convert to fiat via your exchange. **Important:** Because Polymarket is non-custodial, you — not the platform — control your funds at all times. Gas fees on Polygon are typically fractions of a cent, so transaction costs are negligible. --- ## Step-by-Step: How to Get Started on Kalshi Kalshi's onboarding is more traditional, similar to opening a brokerage account: 1. **Create an account.** Go to kalshi.com and sign up with your email address and a strong password. 2. **Complete KYC verification.** Submit your government-issued ID (passport or driver's license), date of birth, and Social Security Number (for U.S. users). Approval typically takes minutes to hours. 3. **Fund your account.** Link a bank account via ACH transfer or use a debit card. Minimum deposit is around $10. ACH transfers may take 1–3 business days to clear. 4. **Browse event contracts.** Explore categories including Politics, Economics, Climate, and Finance. Kalshi's interface shows the current price (probability) and volume for each market. 5. **Place an order.** Choose "Yes" or "No," set your desired quantity of contracts, and pick between market order (instant execution) or limit order (execute at your target price). 6. **Manage your positions.** The portfolio dashboard shows your open contracts, current value, and P&L. 7. **Withdraw funds.** Withdraw via ACH to your linked bank. Processing takes 1–5 business days. If you're interested in maximizing how your deposits and KYC-verified accounts work for you across platforms, check out this guide on [maximizing KYC and wallet returns in prediction markets](/blog/maximizing-kyc-wallet-returns-in-prediction-markets). --- ## Key Differences That Actually Matter ### Regulation and Legal Access This is the biggest fork in the road. **Kalshi is federally regulated** by the CFTC, meaning U.S. traders can legally use it with full consumer protections. Polymarket, by contrast, blocks U.S. IP addresses and does not accept U.S. residents under its terms of service — though it remains accessible internationally. If you're based outside the U.S., Polymarket opens up a huge global market. If you're American, Kalshi is your primary regulated option. ### Liquidity and Market Depth Polymarket consistently shows **higher total volume** on major events. During the 2024 U.S. presidential election, Polymarket saw over **$3.5 billion in total trading volume** — making it one of the most liquid prediction markets in history. Kalshi's volume has been growing but tends to be lower on equivalent markets. Higher liquidity means tighter spreads and less price slippage when you enter or exit positions. For larger trades, this matters significantly. ### Fee Structures Polymarket charges a **2% fee on winnings only** — so if you lose, you pay nothing extra. Kalshi charges a tiered **maker/taker fee** ranging from 1% to 7% depending on contract size and market. For small, frequent trades, Kalshi's fee structure can add up faster. For high-stakes single trades, Polymarket's model may be more economical. ### Market Variety Polymarket covers a wider range of global and niche markets, including **crypto price predictions, science milestones, and international politics**. Kalshi focuses more on U.S.-centric topics — Federal Reserve decisions, inflation readings, Congressional outcomes, and weather events. For political traders in the U.S., you might enjoy reading about [automating House race predictions using AI agents](/blog/automating-house-race-predictions-using-ai-agents) — a strategy that applies well to Kalshi's political markets. --- ## Trading Strategies That Work on Both Platforms Whether you're on Polymarket or Kalshi, certain core strategies apply universally: ### Arbitrage Across Platforms Because the same events are sometimes listed on both Polymarket and Kalshi with different prices, **cross-platform arbitrage** opportunities exist. For example, if Polymarket shows a 58% chance of an event occurring and Kalshi shows 53%, you can buy "Yes" on Kalshi and hedge on Polymarket to capture the spread. For a detailed walkthrough of this strategy, the [cross-platform prediction arbitrage beginner tutorial](/blog/cross-platform-prediction-arbitrage-beginner-tutorial-june-2025) is an excellent next read. ### Market Making via API Both Polymarket and Kalshi offer API access. Market makers provide liquidity by posting both buy and sell orders, earning the spread. This is more advanced but can generate consistent returns in high-volume markets. Learn more about [market making on prediction markets via API](/blog/market-making-on-prediction-markets-via-api-best-approaches). ### AI-Assisted Trading Automated tools and AI agents are increasingly popular for scanning both platforms, detecting mispricings, and executing trades faster than any manual trader. [PredictEngine](/) integrates with both platforms and offers real-time market signals, portfolio tracking, and algorithmic strategy support for serious traders. --- ## Pros and Cons Summary ### Polymarket Pros - Higher liquidity on major events - No KYC required — just a wallet - Global market access - Non-custodial (you hold your funds) - Lower fees on large winning positions ### Polymarket Cons - Not available to U.S. residents - Requires crypto knowledge - No mobile app (browser only) - Unregulated (no CFTC protection) ### Kalshi Pros - Fully legal for U.S. traders - Fiat deposits (no crypto needed) - CFTC-regulated consumer protections - Native mobile app - Limit orders available ### Kalshi Cons - Full KYC required - Lower liquidity vs. Polymarket - ACH withdrawals take several days - Fewer international/niche markets --- ## Which Platform Should You Choose? The answer is simple once you know your situation: - **You're based in the U.S.** → Use **Kalshi**. It's your regulated, legal option with fiat deposits and a clean mobile app. - **You're outside the U.S.** → Use **Polymarket**. Better liquidity, more markets, no KYC friction. - **You're an advanced trader** → Use **both**. Arbitrage between them, automate with API tools, and leverage the pricing differences. - **You want to start with AI-assisted trading** → [PredictEngine](/) supports multi-platform strategies and can help you identify opportunities across both exchanges automatically. For traders interested in specific market verticals, check out this [AI-powered sports prediction markets guide](/blog/ai-powered-sports-prediction-markets-june-2025-guide) — Polymarket tends to offer more sports markets than Kalshi currently. If you're scaling a political trading strategy with a small account, this guide on [scaling up midterm election trading with a small portfolio](/blog/scaling-up-midterm-election-trading-with-a-small-portfolio) covers position sizing and risk management that applies on either platform. --- ## Frequently Asked Questions ## Is Polymarket legal in the United States? **Polymarket** is not legally available to U.S. residents and actively geo-blocks U.S. IP addresses. The platform operates without CFTC registration, so American traders using it via VPN do so in violation of its terms of service and potentially U.S. law. U.S. traders should use **Kalshi**, which is fully CFTC-regulated. ## Does Kalshi require KYC verification? Yes, Kalshi requires full **KYC (Know Your Customer)** verification, including a government-issued ID and Social Security Number for U.S. citizens. This is a requirement of its CFTC-regulated status. The verification process typically takes minutes to a few hours. ## What fees does Polymarket charge? Polymarket charges a **2% fee on winnings only** — you pay nothing if your position loses. There are no deposit or withdrawal fees, though you may pay minimal Polygon network gas fees (typically less than $0.01 per transaction). This makes Polymarket competitively priced for large, high-confidence trades. ## Can I use both Polymarket and Kalshi at the same time? Yes, if you're a non-U.S. trader, you can legally use both platforms simultaneously. Many professional traders do exactly this to exploit **cross-platform price discrepancies**. You'll need a crypto wallet with USDC for Polymarket and a separate USD-funded Kalshi account. ## Which platform has more liquidity? **Polymarket** currently has significantly higher liquidity, especially on major political and economic events. During peak events like the 2024 election, Polymarket's volume dwarfed Kalshi's. However, Kalshi's liquidity is growing rapidly as U.S. adoption increases. ## Do Polymarket and Kalshi have mobile apps? **Kalshi** has dedicated iOS and Android apps. **Polymarket** does not have a native mobile app but is accessible via mobile browser with a responsive interface. For mobile-first traders, Kalshi has a clear usability advantage. --- ## Start Smarter With PredictEngine Whether you're just getting started on **Polymarket**, building your **Kalshi** portfolio, or looking to trade both platforms simultaneously, [PredictEngine](/) gives you the tools to do it more intelligently. From real-time market signals and AI-powered opportunity detection to [algorithmic hedging strategies](/blog/algorithmic-hedging-with-predictions-using-predictengine) and portfolio automation, PredictEngine is built for modern prediction market traders at every level. Stop leaving profits on the table by trading blind. Visit [PredictEngine](/) today to explore platform integrations, track live market movements, and access proven strategies that work across both Polymarket and Kalshi — all in one place.