How to start trading prediction markets: step by step
To start, confirm the platform is available in your state, open and verify an account, fund it with a small amount, and place a small limit order on a market whose rules you have read. You must be at least 18, and some states set a higher age or restrict certain contracts. The whole process takes minutes to a few days, mostly waiting on verification and bank transfers.
You can lose everything you put into a contract. Start with money you would be fine losing.
1. Check that you're eligible in your state
Kalshi (KalshiEX LLC) and Polymarket US (QCX LLC) are CFTC-regulated exchanges, but several states restrict sports contracts on one or both, and the list changes with court rulings. Check availability by state first.
If you live in the US, the international Polymarket.com is not an option. Its documentation lists the United States as close-only: users "can close existing positions but cannot open new ones."
2. Pick a platform
The main differences are fees, which markets are listed, and the price you get. Kalshi charges takers 0.07 × contracts × price × (1 − price). Polymarket US uses the same shape with 0.0695 on standard markets. Our platform comparison covers the trade-offs, including brokers such as Robinhood.
The fee gap is small. A better ask on one venue usually matters more. Our live comparison shows both side by side.
3. Open an account and verify your identity
Regulated exchanges must verify who you are. On Kalshi, the help center says you must be 18 or older, provide basic personal information, and may be asked for "further verification using an identification document."
Kalshi may also ask you to add or confirm your Social Security number after signup. Its help center says SSN verification is not required to deposit or trade, but it is used for identity checks and tax reporting. Expect similar identity checks on Polymarket US.
4. Fund the account
On Kalshi, per its fee schedule last updated July 7, 2026:
| Method | Kalshi fee |
|---|---|
| ACH deposit or withdrawal | None |
| Debit card deposit | Up to 2% |
| Wire deposit | None from Kalshi; your bank may charge |
| Wire withdrawal | Not supported under $500,000 |
ACH is free but slower. A 2% card fee on a small first deposit is a real cost next to the trading fees you are about to pay.
We found no official Polymarket US fee page. Third-party reviews (CryptoSlate and CBS Sports, November 2026) list debit card, ACH, Apple Pay and wire funding with no deposit fees and a $5,000 minimum for wires.
5. Read the market's rules before you buy
Every market has rules naming the data source, the deadline and what counts as Yes. Read them, not just the title. Edge cases decide real money. In February 2026, Kalshi settled a Super Bowl halftime market at 26¢ Yes and 74¢ No because its terms did not count appearing on stage without singing as a performance, while Polymarket's market resolved Yes. Our resolution guide has more examples.
6. Place a small limit order
Use a limit order so you control the price.
Example on Kalshi. A market shows Yes bid 28¢, ask 30¢. You want 5 contracts.
- Option A, take the ask: buy 5 at 30¢ = $1.50. Taker fee: 0.07 × 5 × 0.30 × 0.70 = $0.0735. Total about $1.57.
- Option B, rest a bid at 29¢: if a seller fills it, you pay $1.45. In most Kalshi series the maker fee is zero. It may never fill.
If Yes wins, 5 contracts pay $5.00. If No wins, they pay $0, and you lose what you paid.
Watch how the order fills, where your position shows up, and what the fee line says. That is the point of a tiny first trade. On Kalshi, cancel any resting order before you try to close the position.
For how order books and slippage work, see liquidity and spreads.
7. Decide how you will exit
You can hold to settlement or sell earlier at the current bid. Selling is another trade with its own fee. Decide your exit before you buy, while you are calm.
8. Manage risk
- Size small. Keep any single position to a small share of the money you set aside for this.
- Count the fee. Near 50¢, Kalshi's taker fee is 1.75¢ per contract. On a small edge, that is most of it.
- Avoid thin markets with wide spreads until you understand them.
- Don't chase losses with larger trades.
- Keep records for taxes. Treatment is unsettled; see prediction market taxes.
Mistakes beginners make
- Reading the displayed price as the price you will pay.
- Using a market order in a thin book.
- Skipping the rules and getting caught by a deadline or definition.
- Depositing by card for every small top-up.
- Assuming a price is a forecast. It is the crowd's current guess.
This page is information only, not investment advice.
FAQ
How old do you have to be to trade on Kalshi?
Kalshi requires users to be 18 or older. Some states set a higher age or restrict certain contracts, so check your state's rules.
Can I use Polymarket in the US?
US residents can use Polymarket US, a CFTC-regulated exchange, where it is available in their state. The international Polymarket.com is close-only for the US, so US users cannot open new positions there.
Do I need my Social Security number to trade on Kalshi?
Kalshi's help center says SSN verification is not required to deposit or trade, but Kalshi may ask you to add or confirm it after signup for identity verification and tax reporting.
What is the cheapest way to fund a Kalshi account?
ACH, which Kalshi's fee schedule lists with no fee for deposits or withdrawals. Debit card deposits can cost up to 2%.
How much money do I need to start?
Very little. Contracts are priced between 1¢ and 99¢, so a first trade of a few contracts can cost a few dollars.