Gate Integrates Polymarket Prediction Market: A New Way to Enable Event-Based Trading

Cryptocurrency trading is gradually breaking through price-driven approaches

In the early stages of the crypto market development, most trading activities revolved around asset price fluctuations, such as spot trading or derivatives trading. Investors mainly looked for trading opportunities by analyzing price trends, technical indicators, and market sentiment.

As the market size expanded and trader demand increased, Prediction Markets began to attract attention as a different trading model from traditional markets. In these markets, traders no longer just analyze the price of a specific asset but also make judgments about the outcomes of future events, such as whether a certain policy will pass or if a particular industry will reach a milestone. This trading approach extends market discussion from single asset prices to broader future trends.

Prices in prediction markets represent market consensus

In event-based markets, prices typically reflect the collective judgment of market participants about the probability of a certain outcome. When most market participants believe an event has a high chance of occurring, the related contract’s price rises; if confidence drops, the price falls accordingly. This price formation mechanism reflects the market’s real-time integration of information and viewpoints.

Therefore, prediction markets are not only trading venues but also important references for observing market expectations. Through price changes, users can understand the overall market outlook on the development of a particular event.

Event trading relies more on information and viewpoint analysis

Compared to traditional markets, prediction markets place greater emphasis on interpreting information and differences in viewpoints.

Traders developing strategies often consider multiple sources of information, such as:

• Latest news and market dynamics
• Policy and macroeconomic changes
• Industry development and technological progress
• Community discussions and market sentiment

Even if the final outcome of an event is not yet determined, market expectations can shift, causing price volatility. For skilled information analysts, these fluctuations can themselves create trading opportunities.

Dual-mode interface enhances user experience

To enable users of different experience levels to participate in event markets, the platform offers two distinct operation modes.

1. Prediction Mode
   In prediction mode, the platform presents market information in a simplified manner, such as event probabilities and basic market overviews. This visual design helps new users quickly understand market status and trading logic.

2. Trading Mode
   For traders seeking more detailed control, the trading mode provides comprehensive market data, including market depth, trading volume, and full order placement functions, facilitating strategy management.

This dual-interface design allows users to choose the most suitable operation method based on their trading habits.

Basic steps to participate in prediction markets

For first-time users, the overall process is straightforward.

1. Update the Gate App to the latest version to access relevant features. After updating, log into your account; if you haven’t registered yet, create an account and complete basic verification.
2. Find the prediction market entry on the homepage to browse currently open event markets. Users can select events of interest and establish positions for different outcomes, such as choosing Yes or No.

Once the event’s final result is confirmed, the system will settle according to market rules and distribute earnings to the user’s account.

Centralized trading and on-chain participation run in parallel

To meet different user needs, prediction markets offer two participation methods.

• General users can trade directly through the platform account using stablecoins for the entire process. This approach offers an experience similar to regular trading markets, suitable for those who want quick participation.
• Users familiar with blockchain technology can participate on-chain via Web3 wallets, such as completing trades and settlements on the Polygon network. This method preserves the decentralized nature of blockchain.

This dual-track design balances convenience with the openness of blockchain technology.

Complete trading tools and automated settlement mechanisms

To make the trading process smoother, the platform integrates various features and informational tools, including:

• Real-time market prices and probability changes
• Trading volume and market depth data
• Order placement and position management tools

When the event outcome is finally confirmed, the system automatically completes settlement and distributes earnings, without requiring additional user actions. This automation reduces trading complexity and enhances overall user experience.

Future prospects of prediction markets

As market participation increases and trading mechanisms mature, prediction markets may play a more significant role in the future.

Since prices are formed collectively by numerous participants’ information and viewpoints, these markets are sometimes viewed as crowd-sourced forecasting tools. In the future, this model could be applied to more fields, such as:

• Politics and public policy development
• Macroeconomic trends
• Technological innovation in industries
• Social and cultural events

In the crypto finance ecosystem, event-based trading is regarded as a market with long-term growth potential.

Summary

Prediction markets offer a new direction for crypto trading beyond traditional price-based trading. By trading on the outcomes of future events, market participants can turn information judgment and viewpoint analysis into practical trading strategies. Gate integrates prediction markets into its trading ecosystem, combining intuitive operation interfaces, comprehensive trading tools, and multiple participation options, enabling more users to access and understand this innovative market model. As the market continues to grow and technology advances, prediction markets are expected to play an increasingly important role in crypto finance, bringing more diversity to the trading ecosystem.