Two platforms dominate prediction markets right now: Kalshi and Polymarket.
Combined, they’ve done over $44 billion in trading volume this year. Google shows their odds in search results. CNN and CNBC have data partnerships with them.
But they’re very different platforms. Different regulation. Different funding methods. Different markets. Different fees.
So which one should you use? Let me break it down.
The Quick Version
Use Kalshi if:
- You’re in the US and want full regulatory protection
- You prefer bank transfers over crypto
- You want to trade sports legally without a sportsbook
- You like earning interest on your balance
Use Polymarket if:
- You want zero trading fees
- You’re comfortable with crypto (USDC on Polygon)
- You want deeper liquidity on political markets
- You want access to more exotic markets
Use both if:
- You want to arbitrage between platforms
- You’re serious about prediction market trading
Now let’s dig into the details.
Regulation and Access
Kalshi
Kalshi is fully regulated by the CFTC (Commodity Futures Trading Commission). This is the same agency that regulates futures markets on Wall Street.
What this means for you:
- Legal in all 50 US states (46 states for all markets, 4 states have some restrictions)
- Your money is protected. Kalshi holds customer funds in segregated accounts.
- KYC required. You’ll need to verify your identity.
- Available to anyone 18+, not just 21+ like gambling sites.
Polymarket
Polymarket is crypto-native. It runs on the Polygon blockchain and uses USDC for trading.
The regulatory situation is more complex:
- Polymarket got CFTC approval in late 2025 and is re-entering the US market
- Previously operated offshore and wasn’t available to US users
- The US launch is still rolling out, so availability may vary
- Globally accessible (outside the US, no restrictions)
Funding Your Account
Kalshi
Traditional finance friendly:
- Bank transfers (ACH) - free but takes 1-3 days
- Wire transfers - faster but $25 fee
- Debit cards - instant but 2.9% fee
- Also accepts crypto (USDC, BTC, SOL, WLD) through ZeroHash partner
Bonus: Kalshi pays interest on your cash balance. Currently around 4-5% APY. Your money works for you while it’s sitting there.
Polymarket
Crypto only:
- Need to deposit USDC on Polygon network
- If you already have crypto, this is seamless
- If you don’t, you’ll need to buy USDC on an exchange and bridge it
- For US users (when fully available), there may be direct funding options
No interest on balances, but also no withdrawal fees once you’re in the ecosystem.
Trading Fees
Kalshi
Variable fees based on contract price:
- Typically around $0.01-0.02 per contract
- Fees capped on blocks of 100 contracts
- Works out to roughly 1-2% on small trades, less on large trades
Polymarket
Zero trading fees globally. The US version may have minimal fees (around 0.01%) but this is still far lower than Kalshi.
Winner: Polymarket, clearly. If you’re doing any volume, the fee difference adds up.
Market Selection
Kalshi
Strong in:
- Sports (NFL, NBA, NHL, MLB, tennis, esports)
- Economics (Fed rates, inflation, GDP)
- Politics (elections, appointments, policy)
- Weather and climate
Market selection is curated. Kalshi has to get regulatory approval for each market type, so they focus on categories with clear resolution criteria.
Polymarket
More variety:
- Politics (very deep liquidity)
- Crypto (token prices, ETF approvals, network events)
- Entertainment (awards, celebrity news)
- Science and tech (AI developments, space missions)
- Cultural events and viral moments
Polymarket moves faster on new markets. If something is trending on Twitter, there’s probably already a market for it.
Liquidity
This is where it gets interesting.
Kalshi has been generating more raw volume recently - around $900M weekly compared to Polymarket’s $400M globally. But this is heavily concentrated in sports.
For political markets specifically, Polymarket tends to have deeper books and tighter spreads. The crypto community loves speculating on politics.
For sports and economics, Kalshi often has better liquidity.
Best strategy: Check both platforms for the market you want to trade and see where the spread is tighter.
User Experience
Kalshi
Clean, professional interface. Feels like a brokerage app. Has native iOS and Android apps. Easy to understand for people who’ve traded stocks before.
The order entry is straightforward: pick Yes or No, enter your amount, submit.
Polymarket
More information-dense. Shows full order books, historical price charts, volume data. The interface assumes some market knowledge.
The crypto wallet connection can be a learning curve if you’re not already in that world.
Who’s Using What
From what I’ve seen:
Kalshi attracts:
- Sports bettors who can’t access traditional sportsbooks
- Traders who want regulatory protection
- People new to prediction markets
- Anyone uncomfortable with crypto
Polymarket attracts:
- Crypto natives who are already on-chain
- Political junkies and news traders
- Fee-conscious high-volume traders
- International users (historically)
Other Platforms Worth Knowing
Kalshi and Polymarket aren’t the only options:
Robinhood: Routes through Kalshi, same markets. Good if you already use Robinhood for stocks.
DraftKings Predictions: Just launched December 2025. Sports-focused. Available in 38 states.
FanDuel Predicts: Also new. Partnership with CME Group. Sports and finance markets.
Crypto.com: Has prediction markets alongside their crypto exchange. Sports-focused.
The market is getting crowded, which is great for traders. More competition means tighter spreads and better features.
My Recommendation
If you’re just starting out: Use Kalshi. It’s the safest choice, easiest to fund, and you won’t have to learn about crypto wallets.
If you’re trading seriously: Use both. The arbitrage opportunities alone justify having accounts on multiple platforms.
If you’re fee-sensitive and crypto-comfortable: Polymarket’s zero-fee structure makes it the better choice for frequent trading.
Master Prediction Market Trading
Learn advanced strategies for Kalshi, Polymarket, and other prediction market platforms.
Get the Course →Getting Started
Whichever platform you choose:
- Sign up and complete verification (KYC)
- Fund with a small amount ($100-500) to start
- Watch markets for a few days before trading
- Start with small positions in markets you understand
- Track your results and adjust
The prediction market boom is just getting started. Analysts think this could be a trillion-dollar market by the end of the decade.
The question isn’t which platform to use. It’s whether you’re going to participate while the opportunity is still fresh.