Recently, the prediction market sector has shown a booming trend, with several significant events driving the industry's growing popularity. Among them, Polymarket's acquisition of $2 billion in funding is undoubtedly an important milestone. At the same time, cjhtech provides technical support for Binance, and Binance CEO Zhao Changpeng has also publicly expressed his follow for the prediction market, bringing more attention to the industry. Furthermore, the competition between Kalshi and Polymarket is becoming increasingly fierce, with both sides engaged in an intense battle for user badges.

These events have not only driven the development of the industry but have also attracted numerous emerging projects to enter the market. However, for players familiar with prediction markets, they are well aware of the core challenge facing this industry: there is a complex interdependence between the liquidity and influence of prediction markets.

Prediction markets with insufficient influence struggle to attract adequate liquidity, and insufficient liquidity can lead to a decline in the accuracy of predictions, thereby affecting the credibility of the market. This creates a vicious cycle that is difficult to break. Currently, only the two platforms Polymarket and Kalshi have reached a relatively ideal level in terms of liquidity and the number of markets.

For beginners interested in participating in prediction markets, Polymarket may be a more suitable starting point. However, even on such a relatively mature platform, beginners can easily make mistakes. Therefore, understanding the correct participation methods and common errors is crucial, as this will help newcomers better navigate this market full of opportunities and challenges.

As the prediction market continues to develop, we can expect to see more innovations and breakthroughs. At the same time, participants need to remain cautious and thoroughly understand the market mechanisms in order to seize opportunities and avoid risks in this emerging field.