Imagine a betting platform that is trustworthy, secure and completely transparent. A place where you don’t need to have a fortune to place a bet. A place so private that no one asks for your identity unless you voluntarily reveal it.
Polymarket is a cryptocurrency betting platform developed by Adventure One that leverages the power of blockchain to provide a safe, secure, transparent, highly liquid, and anonymous betting experience. With hundreds of prediction markets covering almost every event related to the crypto world, the platform offers a unique combination of experiences.
The Largest Decentralized Crypto Betting Platform
Polymarket is a decentralized betting platform based on Polygon blockchain technology and focuses primarily on cryptocurrency markets. The platform has hundreds of betting markets related to elections, cryptocurrency events, price predictions, memecoins, regulatory approvals, macroeconomic events, and many other topics.
The platform claims to be the largest betting marketplace in the market. It offers a wide range of opportunities for users to make money, research the market, analyze crowd sentiment, and understand market trends.
The platform is so popular that an average trader in the top 3 by trading volume contributes at least $1 million in trading per week.
Below is a screenshot of Polymarket’s homepage.
Feature
Because it sits on the Ethereum blockchain, Polymarket can offer a wide range of features to users while taking full advantage of the blockchain’s security and Ethereum’s reliability along with the speed of Polygon’s layer-2 solution.
Decentralized
The entire Polymarket platform is decentralized, which makes it resistant to crashes, hacks, and even makes it immune to many bugs.
Secure and immutable
The platform boasts of security that has been audited by Chain Security, a renowned company in the field of smart contract auditing.
Real Time Betting
Like most top betting marketplaces, Polymarket offers real-time blockchain-secured bets. Every bet recorded on Polymarket is based on the Polygon blockchain. This ensures that every user on the platform gets the exact reward they deserve. It also reduces manipulation to zero and makes the platform more transparent.
Additional Bonus
In addition to winning bets, the platform also allows you to earn rewards just by placing orders. The key to winning high rewards is to place orders close to the average market value.
For example, if you place an order for Donald Trump to win the 2024 election and the market shows “yes” orders at $0.59 while sell orders are at $0.41, you will only earn a reward if you place a “yes” order at $0.41.
The goal of rewarding such orders is to help balance the market. Additionally, the highest rewards are reserved for limit orders.
Limit orders are orders that are only executed if the price reaches a trigger price set at a certain price. For example, you could place an order to buy 100 shares of Donald Trump’s winning stock only if the price reaches $0.57. If the price reaches $0.57, only then will your order to buy 100 shares be executed, otherwise it will be canceled at the end of the “betting period.”
How does Polymarket work?
Polymarket is a blockchain-based betting market provider. It gives users access to crypto-focused betting markets secured by the blockchain and trusted by Ethereum and Polygon.
Technology
Polymarket is a unique Layer-3 based on Polygon. The platform uses the Ethereum Virtual Machine to maintain its operations and does not rely on any servers.
Since it is blockchain based, it requires users to have USDC, USDT or ETH to be able to use the platform.
Is Polumarket Layer-2 or Layer-3?
Although Polymarket is considered a Layer-2 platform, it is actually a Layer-3 platform because like other Layer-3s, it is a single Dapp application that provides a specific service. Furthermore, it is built on a Layer-2 solution, Polygon.
Layer-2 are general-purpose blockchains that extend Ethereum transactions.
Automated Market Maker
Polymarket uses automated market makers to provide liquidity to betting markets, which are software that facilitates the exchange of tokens through liquidity pools.
All cryptocurrencies deposited into Polymarket are pooled and users receive “credit” to trade on the platform. Liquidity is shared by all betting markets on the platform so that all users can buy and sell any bet on the platform without long waits. This reduces the reliance on manual effort to provide liquidity.
How to transfer crypto to Polymarket?
Polymarket offers you two different channels to fund your account.
Deposit from Exchange/PayPal
Using the first method, you can deposit cryptocurrency from PayPal or available cryptocurrency exchanges. This is the cheapest method if you have cryptocurrency in your exchange wallet and want to save on gas fees.
Send crypto directly from wallet
Alternatively, you can also use the second option, which is to transfer crypto directly to your Polymarket account. In this method, you can transfer Ethereum and USDC, all on the Polygon blockchain. USDT, DAI and MATIC will be supported in the future.
Don’t forget to check your transaction after it has been approved.
Deposit USDC
In your Polymarket deposit page, select USDC as your preference.
- Copy the displayed address.
- Paste the address into your wallet.
- Select the amount you want to deposit into your Polymarket account.
- Approve transaction.
- You will see a timer after which you will receive the funds in your Polymarket account.
Deposit Ethereum
On your Polymarket deposit page, under other methods, select Ethereum.
- Copy the deposit address and paste it into the transfer page of your wallet/account.
- Approve transaction.
- Once completed, you will receive ETH from your wallet/account and it will automatically convert to USDC.
Guide to making money on Polymarket
Making money on Polymarket isn’t that hard, if you’re lucky. You just need to know a few things before you start.
First of all, since Polymarket operates on the blockchain, you need to have some cryptocurrency, preferably ETH or USDC. Once you have your cryptocurrency, you need to choose a betting market. For example, the prediction below about the winner of the US Presidential election.
Election winner
Next, you need to understand how betting works. As a zero-sum game, there will be winners and losers. The winner will receive the entire amount they wagered plus the amount the loser lost, minus a small fee.
For example, in the example above, if the winner bets on Donald Trump, they need to pay at least $0.56 (and then a multiple of that amount). If they win, they will get $1 back, which is the $0.56 bet plus the $0.44 the loser lost.
However, if they change their mind midway, they are allowed to convert but at the current price. For example, let’s say someone placed a bet at $0.56 and expected Donald Trump to win. If they change their mind, they can sell the bet at the current price of $0.58, then they can bet on Donald Trump losing by buying the bet at $0.42 (current price is $1-$0.58 = $0.42).
At any given time, the total of positive and negative bets will be $1 due to the zero sum game rules.
It is important to note that prediction or gambling markets are dependent on future events and may change over time due to market forces. Therefore, it is always advisable to do thorough research before placing a bet.
How to bet?
Betting on the Polymarket platform is quite easy.
First, you need to log in to Polymarket.
Next, you can log in to the platform using MetaMask, Coinbase Wallet, Wallet Connect, Gmail or any other Email ID. Make sure your wallet is fully funded before proceeding further.
Agree to the terms and conditions, then select start trading.
To start staking, you need to deposit USDC or USDT (ERC-20 or on Polygon) into your Polymarket account.
Once you are logged in, proceed to any betting market. For example, the previous betting market for the US Presidential election.
Place your bet by purchasing a “share” for that bet. In our US Presidential election example, a bet on Donald Trump winning could be placed by purchasing a $0.59 share.
Approve the transaction and your bet will be placed.
How to withdraw money from Polymarket
Now that we have covered the details of deposits, it is time to learn how you can withdraw funds from Polymarket to your crypto exchange account or wallet.
- Navigate to the Polymarket funds page.
- Click Withdraw.
- Get the USDC address of your wallet or exchange account. You will usually get this address under the crypto deposit option in your exchange or wallet.
- Copy the USDC address. Make sure the blockchain for depositing is selected as Polygon. Most wallets and exchanges set Ethereum as default.
- Paste the USDC address on Polygon.
- Click withdraw.
- Your deposit will arrive after a few network confirmations.
Always make sure that the USDC you are sending is to a Polygon address. Sending crypto to the wrong blockchain address will result in complete loss of funds most of the time.
Want a safe place to deposit crypto? Check out MetaMask wallet.
Advantages and disadvantages
Advantages of using Polymarket
The benefits below are listed from our recent experience using the platform.
- Easy deposit and withdrawal methods.
- The level of security provided on the platform is top notch.
- The platform is highly transparent with every transaction secured by the power of blockchain.
Disadvantages of Using Polymarket
Based on platform usage, we found Polymarket lacking in the following areas.
- Withdrawals are only available on Polygon. An Ethereum address would be easier as users would have to use another app like Uniswap to transfer USDC from Polygon to Ethereum.
- Polymarket accepts deposits on the Polygon network, adding other networks especially Ethereum and Solana could make crypto deposits easier.
- The conversion from ETH and USDT to USDC increases fees and delays, affecting user experience.
Alternatives to Polymarket
Augur
Augur is a low-fee betting marketplace. It charges 1.5% on all betting activity. The platform is open to anyone in the world and claims to be non-profit. The platform is based on a decentralized oracle based on the Ethereum blockchain.
Gnosis
Gnosis is a decentralized betting marketplace based on the Gnosis chain, which is itself built on Ethereum. Rather than being a betting marketplace, Gnosis becomes a template for anyone looking to develop a decentralized betting marketplace.
Frequently Asked Questions
Is Polymarket legal?
Polymarket is legal in all countries that allow gambling. It is fully legal in the US and EU. The platform operates as an offshore betting marketplace, accessible to US residents and citizens.
My deposit has not reached my Polymarket account. What should I do?
Deposits typically arrive within minutes. However, on days when the network is congested, they can take up to several hours. To ensure your deposits are quick, set your maximum gas fee higher than the average gas fee on Polygon. If you have deposited or withdrawn a very small amount, less than $10, there is a chance that your deposit will not show up in your account. We have experienced cryptocurrency loss in such cases. So, make sure you deposit a larger amount to ensure a quick transfer.
I deposited funds into the Ethereum blockchain. Are my funds lost?
In most cases, if you send crypto to the wrong address, the transferred funds will be lost forever. However, since USDC has implemented a cross-chain transfer protocol, you can receive your transfer even if you set it to the wrong blockchain. However, make sure you never try this intentionally.
Stone Sanh
According to Bitcoin Magazine
