How Prediction Markets Work

Learn how to trade, earn, and participate in decentralized prediction markets powered by AI resolution and blockchain technology.

HomeHow It Works
Getting Started: 6 Simple Steps
Follow these steps to start trading prediction markets
Step 1

Connect Your Wallet

Connect your Web3 wallet to BNB Smart Chain Testnet to start trading prediction markets.

Step 2

Browse Markets

Explore various prediction markets across different categories like crypto, sports, politics, and more.

Step 3

Analyze & Predict

Use market data, probabilities, and AI insights to make informed predictions on outcomes.

Step 4

Trade Positions

Buy YES or NO positions using BNB. Your payout depends on market outcome and trade timing.

Step 5

Wait for Resolution

Markets resolve automatically using AI or through community disputes after the end time.

Step 6

Claim Rewards

If your prediction is correct, redeem your positions for BNB rewards based on market odds.

Key Trading Concepts
Understand the fundamental concepts behind prediction market trading

Market Question

A binary question about a future event with YES/NO outcomes.

YES/NO Positions

Tokens representing your belief in the outcome. Prices change based on market sentiment.

Probability & Odds

Current market-implied probability of each outcome, calculated from token prices.

Liquidity Pools

Smart contract pools that provide liquidity for trading and determine prices.

Multipliers

Potential return multipliers based on current prices and market probabilities.

Slippage

Price movement between trade submission and execution in volatile markets.

Example Trade Scenario
See how a typical trade works in practice
1 BNB
Investment
2.5x
Multiplier
2.5 BNB
Potential Payout

Scenario: You believe "BTC will reach $100K by end of year" and buy YES positions for 1 BNB when the market implies 40% probability. If correct, you receive 2.5 BNB (1 BNB × 2.5x multiplier).

Ready to Start Trading?

Join the decentralized prediction market revolution. Test your knowledge, hedge risks, and earn rewards on BNB Smart Chain Testnet.