What is Polymarket? A Guide to Decentralized Prediction Markets
The post What is Polymarket? A Guide to Decentralized Prediction Markets appeared on BitcoinEthereumNews.com.
Predictions markets like Polymarket are becoming increasingly popular due to the perception of increased transparency compared to traditional gambling. This article will explore how the Polymarket predictions market works, including how to use it and whether or not it is a safe place to store and trade funds. What are prediction markets? Prediction markets are online, peer-to-peer gambling platforms that allow people to trade shares tied to the outcome of a future event. Similar to a traditional gambling platform, users can place bets on sporting events, political events, and much more. However, rather than simply placing a bet, they buy shares that fluctuate in value based on the current market sentiment towards the outcome of the event. For example, users might bet that Candidate X will win a political election. Shares would typically begin trading at $0.50, indicating a 50/50 likelihood of success or failure. They can be sold at any value provided the market has liquidity to sell. If Candidate X wins, the share will be worth $1.00, and if they lose, the price drops to $0.00. These markets often accept cryptocurrency in exchange for shares. What is Polymarket? Polymarket explained Polymarket is a prediction market hosted on the Ethereum blockchain. Users can buy shares using USD Coin (USDC). Polymarket | Homepage So what is Polymarket used for? Overview of Polymarket Polymarket offers trading on the outcome of US politics, crypto prices, sports, world politics, and other aspects of trending and breaking news. Market fluctuations when staking can cause impermanent loss, where staked funds are consumed by the needs of the market the user is contributing to. Key features of Polymarket Polymarket styles itself as a decentralized predictions market. Of course, true decentralization is hard to come by, and Polymarket staff control many different aspects of the platform including…
Filed under: News - @ July 16, 2024 6:12 am