Frequently Asked Questions

Prediction markets combine finance, forecasting, regulation, and platform-specific rules. That makes beginner questions surprisingly easy to answer badly if the page relies on old assumptions.

Below are the safest short answers to the questions new users ask most often.

Legality and Access

Is it legal to trade on prediction markets in the United States?

It depends on the platform, the product, and the current legal setting. This is not an area where one short answer covers every case.

Can US citizens use Polymarket?

Users should check Polymarket's current restrictions and access documentation directly. This is a time-sensitive question and should not be answered from old summaries.

What happens if I use a VPN to access restricted platforms?

Using a Virtual Private Network (VPN) to spoof your location violates the Terms of Service of offshore prediction platforms. If caught by their compliance algorithms, your account can be permanently frozen, and your funds (USDC) may be locked indefinitely without legal recourse.

Taxes and Financials

How are taxes handled on Kalshi?

Check Kalshi's current tax documentation and your own tax situation. Platform reporting and tax treatment are practical questions, but users should avoid assuming one simple rule applies to every contract or every person.

How do I pay taxes on Decentralized Polymarket winnings?

Users are usually responsible for keeping records and understanding how local law treats their activity. The exact reporting workflow depends on jurisdiction and platform behavior.

Operations and Technology

Are prediction markets considered gambling?

That depends on the platform, the legal framework, and the jurisdiction. In practice, prediction markets sit near the boundary between trading, event contracts, and gambling law.

How does Polymarket know when an event happens?

Polymarket uses the UMA (Universal Market Access) Oracle. Instead of a central corporate judge deciding the outcome, UMA relies on a decentralized network of voters who are financially incentivized to report the objective truth based on specific, pre defined resolution criteria.

Do Kalshi and Polymarket have mobile apps?

• Kalshi: Yes, Kalshi has robust, highly rated iOS and Android apps that feature biometric login and instant fiat deposits via Plaid and Apple Pay.
• Polymarket: Check Polymarket's current official product pages for the latest app and access information rather than relying on older launch claims.

What is the safest first step as a beginner?

Read the platform's current access rules, funding instructions, and market-resolution rules before sending money anywhere.