Polymarket vs Kalshi: Which Prediction Market Should You Use?
The two leading prediction market platforms take different approaches: Polymarket offers the largest crypto-based marketplace globally, while Kalshi provides the only CFTC-regulated option for US traders. Here's everything you need to know to choose the right platform.
Quick Verdict
Choose Polymarket if:
- +You're outside the US
- +You want maximum liquidity and market variety
- +You're comfortable with crypto (USDC)
Choose Kalshi if:
- +You're a US resident
- +You prefer USD deposits via bank or card
- +Regulatory protection is important to you
Feature Comparison
| Feature | Polymarket | Kalshi |
|---|---|---|
| US Legal | No | Yes |
| CFTC Regulated | No | Yes |
| Trading Fees | 0% | 0% |
| Deposit Methods | Crypto | USD (Bank/Card) |
| Market Variety | High | Medium |
| Liquidity | Very High | Medium |
| Mobile App | Web Only | iOS & Android |
| Min Deposit | None | $1 |
| Withdrawal Speed | Instant (crypto) | 1-3 days (bank) |
| Political Markets | Extensive | Extensive |
Polymarket
Founded: 2020
US Legal: No
Payments: USDC (Polygon), Credit Card (via MoonPay)
Pros
- +Largest prediction market by volume
- +Deep liquidity on popular markets
- +No trading fees
- +Wide variety of markets
- +Mobile-friendly interface
- +Real-time price charts
Cons
- -Not available to US residents
- -Crypto-only (requires USDC)
- -Less regulatory oversight
- -Some markets lack liquidity
- -No official mobile app
Kalshi
Founded: 2021
US Legal: Yes (CFTC Regulated)
Payments: Bank Transfer (ACH), Wire Transfer, Debit Card
Pros
- +Fully regulated by CFTC
- +Legal for US residents
- +USD deposits (no crypto needed)
- +Institutional-grade security
- +Official iOS and Android apps
- +Unique economic event markets
Cons
- -Lower liquidity than Polymarket
- -Fewer market categories
- -Some markets have limited volume
- -US-only availability
- -Stricter market approval process
Key Differences Explained
Regulatory Status
The biggest difference between these platforms is regulatory status. Kalshi is the only CFTC-regulated prediction market exchange in the United States, operating as a Designated Contract Market (DCM). This means US residents can legally trade on Kalshi with full regulatory protections.
Polymarket operates offshore and explicitly blocks US users. While it offers more markets and liquidity, US residents using VPNs risk account closure and fund seizure.
Liquidity & Volume
Polymarket dominates in trading volume, particularly during major events. The 2024 US Presidential election saw over $3 billion in total volume on Polymarket, making it the largest prediction market globally. Kalshi's volumes are growing but remain a fraction of Polymarket's, though the gap is narrowing as more US traders discover the platform.
Payment Methods
Polymarket requires cryptocurrency (USDC on Polygon network). You can buy USDC directly with a credit card through MoonPay, but withdrawals are crypto-only. This can be a barrier for users unfamiliar with crypto wallets.
Kalshi accepts traditional USD deposits via ACH bank transfer, wire transfer, or debit card. Withdrawals go directly to your bank account, typically within 1-3 business days.
Market Selection
Polymarket offers a broader range of markets, including crypto prices, sports, entertainment, and global politics. New markets can be created quickly based on community interest.
Kalshi's markets must go through CFTC approval, resulting in fewer but more carefully vetted offerings. They excel in economic indicators (inflation, Fed rates), weather events, and US politics.
Frequently Asked Questions
Is Polymarket legal in the US?
No, Polymarket is not available to US residents due to regulatory restrictions. US users must use CFTC-regulated alternatives like Kalshi for legal prediction market trading.
Is Kalshi safe and regulated?
Yes, Kalshi is fully regulated by the Commodity Futures Trading Commission (CFTC) as a designated contract market (DCM). It's the first federally regulated prediction market exchange in the US.
Which has better liquidity: Polymarket or Kalshi?
Polymarket generally has higher liquidity, especially on major political events. During the 2024 US election, Polymarket saw over $1 billion in trading volume. Kalshi's liquidity is growing but remains lower on most markets.
Can I use both Polymarket and Kalshi?
Only non-US residents can legally use both platforms. US residents are restricted to Kalshi due to Polymarket's geo-blocking of US users.
What are the fees on Polymarket vs Kalshi?
Both platforms offer zero trading fees on most markets. Polymarket uses a spread-based model while Kalshi eliminated fees on most contracts. However, crypto gas fees apply on Polymarket, and bank transfer fees may apply on Kalshi.
Which platform is better for beginners?
Kalshi is generally better for US beginners due to its USD deposits, mobile apps, and regulatory protections. Non-US users comfortable with crypto may prefer Polymarket for its larger market selection.
Ready to Start Trading?
Explore our full directory of prediction market platforms and tools to find the best fit for your trading style.