Frequently Asked Questions
What are crypto prediction markets?
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Crypto prediction markets are decentralized platforms where users trade shares representing the probability of future events — such as whether a cryptocurrency will reach a price target, who will win an election, or the outcome of a sports event. Prices are set by supply and demand, so a share trading at 65¢ implies a ~65% probability of that outcome occurring. Polymarket is currently the largest prediction market platform by volume.
Are prediction markets legal?
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The legality of prediction markets varies by jurisdiction. In many countries they operate in a legal grey area. Polymarket is geo-restricted in the United States. Always check your local regulations before participating. CoinGape provides this data for informational and research purposes only — we do not facilitate trading or accept bets.
How do fees and liquidity work?
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Polymarket charges a small maker/taker fee (typically 0–2%) on trades. Liquidity is provided by automated market makers (AMMs) and individual liquidity providers. Higher-volume markets tend to have tighter spreads and better liquidity. The "Total Vol" and "24h Vol" figures shown on each card reflect cumulative trading activity in USD.
What risks are involved?
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Key risks include: smart contract risk (bugs in underlying code), resolution risk (disputes over outcome determination), liquidity risk (difficulty exiting a position), regulatory risk (changing laws), and market manipulation in low-liquidity markets. Never invest more than you can afford to lose. This page is for informational purposes only.