In this guide
Key takeaway: Polymarket is a decentralised prediction market where traders buy YES/NO shares on real-world events using USDC on the Polygon blockchain. Smart contracts handle all settlements automatically.
How does Polymarket work? Fundamentally, Polymarket operates as a prediction marketplace: rather than wagering against a bookmaker's spread, you exchange positions with other participants who hold differing views on an outcome. Market prices continuously shift to reflect aggregate participant sentiment — adjusting instantly as fresh information emerges.
The basics: prediction markets
Prediction markets enable you to acquire shares representing potential outcomes. Each share yields $1 upon YES resolution, or $0 upon NO resolution. Purchasing a YES share for 40 cents ($0.40) indicates your assessment that a 40% probability exists for that event. Success doubles your capital; failure forfeits your initial investment.
Polymarket operates differently from conventional bookmakers by eliminating the spread (the "vig"). Market participants determine pricing through their collective buying and selling activity.
How Polymarket uses blockchain
Polymarket operates atop the Polygon blockchain (a layer-2 scaling solution for Ethereum). This architecture delivers:
- Complete transparency and on-chain verification of all activity
- Automated execution of deposits, trades, and distributions via smart contracts
- Prevention of fund seizure or outcome manipulation by Polymarket operators
- Rapid settlement completed within minutes rather than extended periods
USDC: the currency of Polymarket
Trading exclusively occurs in USDC (USD Coin), a stablecoin maintaining a 1:1 correspondence with the US dollar. Your trading account remains insulated from cryptocurrency price fluctuations — each USDC consistently maintains $1 valuation.
How markets resolve
Upon event conclusion, Polymarket employs the UMA Oracle (Universal Market Access) for market settlement. An appointed "proposer" declares the outcome; a 2-hour challenge period follows; absent objections, settlement becomes binding. Contested resolutions proceed to UMA token-holder arbitration — a decentralised dispute mechanism.
Getting started on Polymarket
- Create an account — register via email and satisfy KYC requirements
- Deposit USDC — fund through MoonPay, conventional bank transfer, or existing cryptocurrency holdings
- Browse markets — explore political, sporting, cryptocurrency, entertainment and additional categories
- Buy shares — select YES or NO and specify your investment amount
- Track and exit — liquidate holdings anytime prior to market conclusion
PolyGram streamlines this workflow through a mobile-optimised platform and passwordless email authentication. Start trading on PolyGram →
Why Polymarket prices are accurate
Prediction markets have repeatedly demonstrated superiority over conventional polling methodologies and specialist commentary. Throughout the 2024 US election cycle, Polymarket's probability assessments surpassed accuracy levels achieved by leading polling organisations. The mechanism: financial incentives compel participants toward precise forecasting rather than bias.