Both are leading prediction market platforms — but they serve very different users. Here's everything you need to know to choose the right one, or skip both and practice for free first.
The world's largest prediction market by volume. 3,000+ markets on politics, crypto, sports, and more. Requires a crypto wallet and is not available to US residents. Best-in-class liquidity on major events.
The only CFTC-regulated US prediction exchange. USD deposits, no crypto wallet needed. Focused on US political and economic markets. Fully legal for American traders.
| Feature | Polymarket | Kalshi |
|---|---|---|
| Legal for US residents | ✗ Prohibited | ✓ CFTC-regulated |
| Requires crypto wallet | ✓ USDC required | ✗ USD deposits |
| Number of markets | 3,000+ | ~300 |
| Fee structure | ~2% per trade | 7% on profits |
| KYC required | ✓ Yes | ✓ Yes (full) |
| Geographic availability | Global (excl. US) | US residents only |
| Market topics | Politics, crypto, sports, science, culture | US politics, economics, weather |
| Minimum position | $1 | $0.01 |
| Withdrawal speed | Instant (USDC) | 1–3 business days |
| Practice / demo mode | ✗ None | ✗ None |
This is the most important difference. Kalshi is CFTC-regulated — it operates as a Designated Contract Market (DCM) and is fully legal for US residents. Polymarket is not legal for US residents. Polymarket operates offshore (on the Polygon blockchain) and its terms of service explicitly prohibit US access. US traders caught using Polymarket face potential legal risk.
Polymarket wins decisively on breadth. It lists markets on everything from US elections and Fed rate decisions to Premier League results and AI research milestones. Major political events routinely see $50M–$500M in volume. Kalshi focuses on curated US-centric markets: economic indicators, weather, elections, and Fed meetings. Depth on those specific markets is competitive, but the long tail is absent.
Polymarket charges approximately 2% per trade. Kalshi charges 7% on net profits per market, with no fee on losing positions. For a trader who wins 60% of the time with an average profit of 2× their stake, Kalshi's fee is materially higher. However, Kalshi's fee only applies on net gains, which reduces the psychological sting of trading fees on losing days.
Polymarket uses an automated market maker on Polygon; trades settle instantly in USDC. A MetaMask or Coinbase Wallet account is required, which adds friction for crypto newcomers. Kalshi has a more traditional brokerage UX — bank account linking, USD balances, and a clean web/app interface. Neither offers a demo mode for practice trading.
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PaperPoly gives you $1,000 in virtual capital to trade real markets. No wallet, no KYC, no geographic restrictions.
No. Polymarket's terms of service prohibit US residents due to CFTC regulations. US residents who want legal real-money prediction market trading should use Kalshi, which is CFTC-regulated. For risk-free practice, PaperPoly has no geographic restrictions.
Polymarket has significantly more markets — typically 3,000+ active markets covering politics, crypto, sports, science, and culture. Kalshi focuses on a curated set of around 200–400 markets, primarily US economic and political events.
Polymarket charges approximately 2% per trade (maker/taker fee). Kalshi charges a 7% fee on profits. For large profitable positions, Polymarket's fee structure is typically cheaper. Kalshi's fee is only on net profits, so losing trades have no fee.
Polymarket generally has higher liquidity, especially on political and crypto markets, with hundreds of millions of dollars in volume on major events. Kalshi has grown significantly but has lower overall volume. For large positions, Polymarket typically offers tighter spreads on popular markets.
Yes. PaperPoly lets you paper trade live Polymarket odds with $1,000 in virtual capital — completely free, no wallet, no KYC, open to everyone including US residents. It's the best way to learn prediction market trading without risking real money.
PaperPoly is a free prediction market simulator — trade live Polymarket odds with $1,000 virtual capital.
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