Polymarket FAQ: Common Questions Answered

What is Polymarket exactly?

Polymarket is a blockchain-based prediction market where you trade shares representing the probability of real-world events. Instead of betting against a bookmaker, you trade with other users who disagree with your prediction. Each market has binary outcomes (Yes/No), and shares are priced between $0.01–$0.99 based on collective market sentiment.

Example: A market asking "Will Bitcoin reach $100k by December?" trading at Yes $0.40 means the market collectively believes there's a 40% chance. If you buy Yes shares at $0.40 and the event happens, your shares redeem at $1.00 — a $0.60 profit per share.

The platform runs on Polygon blockchain, uses USDC stablecoin for all transactions, and settles outcomes through UMA oracle (decentralized resolution system).

Do I need cryptocurrency experience to use Polymarket?

Short answer: Basic crypto knowledge helps significantly.

What you need to know:

• How to set up and secure a crypto wallet (MetaMask or Phantom)
• How to purchase and send USDC on Polygon network
• What gas fees are and how to pay them with MATIC tokens
• How to bridge tokens between networks (if needed)

Learning curve: 30–60 minutes for crypto newcomers, 5–10 minutes for experienced users.

If you've never used cryptocurrency before, consider starting with fiat-friendly alternatives like Kalshi (requires bank account only) until you're comfortable with crypto basics.

Which wallet should I use — MetaMask or Phantom?

Both work well with Polymarket. Choose based on your existing crypto ecosystem:

Recommendation: MetaMask for desktop trading, Phantom for mobile-first users.

How much money do I need to start?

Minimum: $10–$20 to test the platform (plus ~$5 for gas fees in MATIC)

Recommended starter amount: $100–$500

• Allows diversification across 5–10 markets
• Cushions against early learning mistakes
• Covers gas fees without worrying about costs

Gas fee note: Keep 0.5–1 MATIC (~$0.50–$1) in your wallet to pay for transactions. Each trade costs $0.10–$0.50 in gas depending on network congestion.

How do I make money on Polymarket?

Method 1: Buy low, sell high (before resolution)
Purchase Yes shares at $0.30, sentiment shifts to $0.60 → sell for immediate profit without waiting for event outcome.

Method 2: Hold until resolution
Buy Yes at $0.45, event happens → shares redeem at $1.00 (gross profit $0.55 per share, minus ~2% fee).

Method 3: Market making
Place limit orders on both sides (buy Yes $0.48, sell Yes $0.52) to capture spread as liquidity provider.

Method 4: Arbitrage
Find price differences between Polymarket and traditional bookmakers/exchanges, profit from convergence.

What are "Yes" and "No" shares?

Every market has two sides: Yes (event will happen) and No (event won't happen).

Pricing rule: Yes price + No price ≈ $1.00 (minus small spread)

Example market: "Fed cuts rates in November"

• Yes trading at $0.67
• No trading at $0.33

If you believe rate cut is more likely than 67%, buy Yes. If you think it's less likely, buy No or sell Yes.

At resolution: Winning shares pay $1.00, losing shares pay $0.

Can I sell my shares before the event happens?

Yes, and this is one of Polymarket's key advantages over traditional betting.

You can exit positions anytime by:

1. Placing a sell order at current market price (instant execution)
2. Setting a limit sell order at your target price (waits for buyer)

Use cases:

• Lock in profit when odds move in your favor
• Cut losses if new information changes your prediction
• Free up capital for better opportunities

Liquidity note: Popular markets (politics, major crypto events) have tight spreads (0.5–2%). Niche markets may have wider spreads (3–10%), making exits more expensive.

What happens if I disagree with market resolution?

Markets resolve through UMA oracle — a decentralized dispute system with economic incentives for accuracy.

Standard resolution process:

1. Event occurs (or deadline passes)
2. Anyone can propose outcome (Yes/No) to UMA oracle
3. 2-hour challenge period begins
4. If no dispute, market settles with proposed outcome
5. If disputed, UMA token holders vote (48-hour voting period)
6. Majority decision becomes final resolution

Dispute costs: $10,000+ staked in UMA tokens (you lose stake if your dispute fails)

Practical advice: Read market resolution criteria carefully before trading. Markets with clear, objective criteria ("Bitcoin price above $50k on Coinbase at 11:59pm UTC") resolve smoothly. Ambiguous markets ("Does Elon Musk 'control' Twitter?") risk disputes.

What fees does Polymarket charge?

Real example: Invest $100 → Win $180 gross → Pay $3.60 trading fee (2% of $180) → Net win $76.40 after fees and initial stake.

How do fees compare to other platforms?

Total cost to win $100:

Verdict: Polymarket is 3–7x cheaper than competitors for most trades.

Are there hidden fees I should know about?

No hidden fees, but watch for these costs:

1. Slippage on large orders — buying $10k of shares may move market price 1–5%, effectively increasing your cost
2. Gas fee spikes — during Polygon network congestion, fees can temporarily rise to $1–$2 per transaction
3. Bridge fees — if you need to move USDC from Ethereum mainnet to Polygon, expect $10–$30 in ETH gas (avoid by buying USDC directly on Polygon-supporting exchanges)

Is Polymarket safe to use?

Safety depends on understanding the risk model:

Comparison: Safer than custodial betting sites (no bankruptcy risk), riskier than FDIC-insured bank accounts (no insurance, smart contract exposure).

What happens if Polymarket shuts down?

Good news: Because Polymarket is non-custodial, platform shutdown wouldn't lock your funds.

Your USDC and shares exist on Polygon blockchain, not Polymarket's servers. Even if the website disappeared tomorrow:

• Your funds remain in your wallet (you control private keys)
• Smart contracts continue operating on blockchain
• You could interact with markets through blockchain explorers or alternative interfaces

Historical precedent: When Augur (another prediction platform) lost popularity, users could still settle positions through direct smart contract interaction.

How do I protect my wallet from hacks?

Essential security practices:

1. Never share seed phrase — not with anyone, ever (Polymarket will never ask for it)
2. Use hardware wallet for large amounts — Ledger/Trezor provide offline key storage ($50–$200 investment)
3. Verify URLs — bookmark polymarket.com, avoid phishing sites
4. Test with small amounts — send $10–$20 first to verify everything works
5. Separate wallets — use different wallet for large holdings vs active trading
6. Enable wallet security features — password protection, biometric authentication

Can US residents use Polymarket?

Current status (October 2025): US access is restricted, but launching in 2026.

Timeline:

• 2022: CFTC fined Polymarket $1.4M, blocked US users
• July 2025: DOJ/CFTC investigations closed, Polymarket acquired CFTC-licensed exchange
• Expected Q1-Q2 2026: US markets launch through regulated DCM (Designated Contract Market)

What to expect in 2026:

• Email registration (KYC requirements TBD)
• CFTC-compliant markets (politics, sports, business events)
• Same low-fee structure as global platform
• USDC trading on Polygon blockchain

Is Polymarket legal in my country?

Depends on jurisdiction:

Generally accessible: UK, most of EU, Singapore, UAE, Canada, Australia, Japan, South Korea, Latin America

Restricted/blocked: US (until 2026), China, North Korea, Iran, Syria (sanctions)

Check before using:

1. Review Polymarket's Terms of Service for restricted countries
2. Consult local gambling/prediction market regulations
3. Consider tax implications (winnings may be taxable as capital gains)

Do I need to pay taxes on Polymarket winnings?

Likely yes, but varies by country.

US traders (2026+): Prediction market winnings typically treated as capital gains (short-term if held <1 year, long-term if >1 year). Consult tax professional familiar with crypto and prediction markets.

Non-US: Tax treatment varies widely:

• UK: May qualify as gambling winnings (tax-free)
• Germany: Crypto gains <€600/year tax-free
• Australia: Capital gains tax applies

Record-keeping: Track all trades (entry price, exit price, dates) for tax reporting. Blockchain provides permanent transaction history.

How do I withdraw money from Polymarket?

Standard withdrawal path:

1. Navigate to wallet → click your balance → select "Withdraw"
2. Enter amount → specify USDC to withdraw
3. Choose destination → paste your external wallet address (Polygon network)
4. Confirm transaction → pay gas fee (~$0.20–$0.50 in MATIC)
5. Wait for confirmation → 1–5 minutes on Polygon blockchain
6. Send to exchange → transfer USDC from wallet to Coinbase/Binance
7. Convert to fiat → sell USDC for USD/EUR/etc
8. Bank withdrawal → transfer to bank account (1–3 business days)

Total timeline: 1–3 business days from Polymarket to bank account.

Detailed guide: /how-to-withdraw.html

My withdrawal is stuck — what do I do?

Common causes and fixes:

Still stuck? Troubleshooting guide: /guides/withdrawal-stuck.html

Polymarket vs PredictIt — which is better?

Quick comparison:

Full comparison: /alternatives/polymarket-vs-predictit.html

Polymarket vs Kalshi — which should I use?

Quick comparison:

Full comparison: /alternatives/polymarket-vs-kalshi.html

Can I use bots or APIs to trade?

Yes, Polymarket provides public APIs for automated trading.

Use cases:

• Arbitrage bots (find pricing inefficiencies)
• Market making (provide liquidity, capture spread)
• Data analysis (track sentiment trends)
• Portfolio automation (rebalance positions)

API documentation: docs.polymarket.com/api-reference

Note: High-frequency trading may trigger rate limits. Respect API terms of service.

Is there a Polymarket token or airdrop?

Confirmed: Polymarket will launch POLY token with airdrop after US market launch (expected late 2026 or 2027).

What we know:

• Token will reward historical users based on trading volume/activity
• Airdrop details not yet announced
• No token currently exists (beware of scams claiming otherwise)

Farming strategy: Use platform naturally (volume, market creation, liquidity provision) — but don't trade solely for airdrop (you'll lose more on bad trades than gain from potential token).

How accurate are Polymarket predictions?

Historically strong performance:

• 2024 US election: Polymarket odds deviated <2% from final results (vs 6–8% for traditional polls)
• Crypto events: ETF approval predictions 85%+ accuracy
• Sports: Comparable to traditional sportsbooks (within 1–3%)

Why accurate: "Wisdom of crowds" + real money at stake = better signal than polls (where respondents have no skin in the game).

Caveat: Low-liquidity markets (<$10k volume) are less reliable. Focus on markets with $100k+ volume for best price discovery.

Why can't I connect my wallet?

Common fixes:

1. Clear browser cache → Try incognito/private mode
2. Update wallet extension → MetaMask/Phantom should be latest version
3. Switch networks → Ensure wallet is on Polygon network (not Ethereum/other chains)
4. Disable other wallets → Multiple wallet extensions can conflict
5. Try different browser → Some wallets work better on Chrome vs Firefox

My trade isn't executing — what's wrong?

Possible causes:

1. Insufficient MATIC for gas → Need 0.1–1 MATIC in wallet
2. Slippage tolerance too low → Increase slippage in settings (1–3%)
3. Market paused → Check if market is halted due to breaking news
4. Network congestion → Try again in 5–10 minutes or increase gas price

Where can I get help?

Official support:

• Polymarket Discord: discord.gg/polymarket
• Twitter: @Polymarket
• Email: support@polymarket.com

Community resources:

• Reddit: r/PolymarketHQ
• This site: /user-reviews.html for community experiences