If you've ever had any exposure to a sportsbook or bought any stocks for trading, for instance, then understanding how to use Kalshi won't be a problem.
At its core, Kalshi is a CFTC-regulated prediction market where you can trade on pretty much everything.
From weather to elections to sports, and beyond.
As shown in the official app above, you will realize that you can create a bet on something happening by buying a yes or no contract.
And in this write-up, we're going to go over how to use Kalshi smartly and responsibly.
Across our content, you will realize that we always suggest folks start off with a conservative budget.
It only takes somewhere between five and 10 dollars to understand these tools. Anybody who tells you otherwise can be considered irresponsible from our end.
We are here to educate people on how to use the best and latest financial tools in the world. Whether it is to buy a beautiful home for your family, or even to save a family member.
Kalshi works with top-tier blockchains like Solana, Ethereum, and more. A very fast and efficient blockchain that I vouch for. To the point that I frequent their beautiful Manhattan office in the Bowery, called Solana Skyline.
Prediction markets are tools that, under the right mindset, can change your life. Again, here at Joined Crypto, we want to showcase and educate users without speculation in mind.
The coolest part is that if you do not have $1 to spare, you can even use a demo account to practice.
Not knowing how to use Kalshi is not an excuse not to try it out.
Without further ado, let's get started.
My relationship with Kalshi
This is a special write-up for me.
In the early 2020s, my friend and I gave it a shot at fundraising for a sports platform.
One where you could predict the sports transfer market.
We spoke to top teams, including folks related to Barcelona FC, Juventus, PSG, Manchester United, Chelsea, Leeds United, the NBA, and even women's sports.
Coolest experience ever, and I'll always give a big shoutout to my former co-founder, Seb, for pushing me hard and believing in me.
A really cool investment firm called Base10 showed us what Kalshi was building.
And at that point we realized that we couldn't really compete with that product. Mind you, I was the CEO of this effort, and I couldn't find a way to tackle the situation in time.
Kalshi has come a long way, and I was one of those early adopters, basically because I was curious about what they were building.
Check the Kalshi email below that I got during their early days.
I've seen this epic company rise from the ground, and let me tell you, they are just getting started.
What Is Kalshi and How Does It Work?
At its core, Kalshi is a prediction market and a regulated exchange business in its own right. It's a direct rival to Polymarket, the latter being the company that coined this business model.
Just check out the platform above. This is coming straight from the Kalshi app.
For this particular exercise, we are going to flex with $10 to show you how it works.
Remember, at Joined Crypto, we strive to pitch tools that are compliance-ready in the United States.
In this case, Kalshi is regulated in the United States by the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market.
The real difference here is that you are not betting against the house. The engine behind prediction markets is built on peer-to-peer event contracts through a central order book.
And just like any company would, they charge a small fee per contract that you buy and sell. Regardless of whether you buy a yes or a no contract, remember that there's a small fee tied to it.
What are event contracts?
To make it simple here, Kalshi is built around a binary event contract.
Basically, the contract is either YES or NO.
For example, if a contract trades at $0.42 for YES, then it means that the market is pricing this specific event at 42%.
How does Kalshi differ from a sportsbook?
One thing that you will notice is that a sportsbook runs with a vig. And to make things simple, this is how they make money.
On the other hand, Kalshi does not operate with a vig. Instead, they use other methods that are similar to generate revenue.
Remember, on Kalshi you trade against other users. On a sportsbook, you trade against the house.
Personally, I've tried both. One of my favorite things about prediction markets is that you can exit your position at any time.
On the other hand, sportsbooks will at times limit cash-outs, which sucks; at times I wanted to exit my position on, let's say, an NBA game, and I just couldn't do it.
And the one thing that you must pay close attention to will always be compliance. In this case, Kalshi and prediction markets are backed by the CFTC, instead of state gaming boards.
How does Kalshi make money?
One thing I didn't understand until recently is that Kalshi might increase the fees as the odds get closer to even.
Meaning that 50/50 odds might look different from 70/30.
As someone who worked for a small neobank, I can tell you that all these fintech companies, for the most part, rely on transaction revenue, the North Star KPI in fintech, in my opinion.
Is Kalshi legal and regulated?
A cool thing about Kalshi is that it is a federally regulated exchange, meaning that the CFTC is behind it, and it operates with Kalshi Klear, its own clearinghouse.
Let's just put it this way: Kalshi is Grandma-ready, meaning that this is a product that, if handled with the right mindset, even with a minimum investment of $10, a person can understand it.
The whole point of this write-up is again to tell you how to use Kalshi for meaningful reasons.
Let's zoom out for a second. Prediction markets, at their core, really blew up thanks to Polymarket, a company that's obviously a direct competitor to Kalshi.
The important lesson here is that Kalshi's moat came from their very own, brave founding team. These are people I admire very much: Tarek Mansour and Luana Lopes Lara. Both are incredible at what they do.
The badass part here is they had to go face-to-face against the CFTC back in 2023. Mind you, these folks were just in their late 20s when they decided to go against them.
And believe me, as of today, it was the right call. Traffic from Kalshi is dwarfing Polymarket even though they had a head start.
Just a reminder that whoever dominates in the world's biggest economy wins the race.
Don't believe me? Well, the numbers speak for themselves.
Again, both platforms offer the same, yet the numbers tell the story.
What Can You Trade on Kalshi?
At this point, pretty much everything.
From elections to where the stock market is going to go next, to the price of common goods.
Again, the sky is the limit.
Elections, politics, culture, sports, crypto, commodities, climate, economics, finance, tech, and science.
Let's break down some examples of some of the greatest markets.
Economics and financial markets
In terms of economics and markets, we can opt for an alternative beyond just buying the asset itself.
Something that is unique, and once again an opportunity to take advantage of a new financial product.
Politics and elections
To be frank here, as I said before, I've been tracking Kalshi's progress ever since some of the best investors in the world mentioned them to me.
If you were to follow a timeline, you will notice that prediction markets, specifically Kalshi, became popular because of elections.
From presidential elections to electing the mayor of New York City.
What's funny here is that prediction markets are becoming a forecasting north star, to the point that they are becoming more accurate than professional market firms trying to anticipate the results.
Weather and climate
This particular category is quite wild to me.
And in some of our previous writings we've explained how oracles, such as UMA or Chainlink, become central to developing markets like these.
Picture yourself trying to predict the weather in New York City; you could say the weather is going to be hot, or you could say it's going to be cold; it's really up to you to decide.
Something that we couldn't even imagine a decade ago.
Funny enough, oracles are still trying to ensure that these event contracts are not vulnerable.
To the point that a fella in Europe decided to find the oracle temperature sensor and heat it with an air dryer. And you guessed right; that dude cashed in a pretty good payout.
This just signals that prediction markets are just getting started.
I once again advise you to simply test out these products with a small sum, not more than $10.
As the title of this write-up says, we're just here to learn how to use Kalshi.
Sports markets
This might be where I hone in the most.
As I said, I've tested many sportsbooks, and yes, I'm down tremendously.
To be fair, both products are pretty good. Your typical Joe will not see a difference, but for those who want to see how prediction markets work, it is definitely worth a shot.
Kalshi has developed to the point that you can even do the equivalent of a parlay. In this case, called combos.
Crypto and culture markets
Look, I really do not want to dive too much into crypto-related prediction market events.
As we say on our website, we try to stay away from speculation.
Let's say that we're more focused on educating people in crypto and hopefully helping you land a job in this very interesting industry.
Things can get wild here. Make sure you're trading an event contract that tries to predict the price of a digital asset, like Bitcoin, Ethereum, Solana, or anything that you're interested in.
As you can see above, the risk is immense. If people lose money by trading the market and actually buying the asset, well, let me tell you, you're going to lose it here too.
On the other hand, we have some pretty cool markets when it comes to culture and commercial products, let's say.
Think of popular video games, or maybe a movie, and even the Oscars, if you are an avid movie fan. This is what we consider a culture prediction market event contract.
The sky's the limit, basically.
How to Set Up a Kalshi Account
It's actually pretty simple. It only takes a minute or two.
Note some of the steps below.
Age and eligibility requirements
Here at Joined Crypto, we try to curate our content mainly for the United States.
If you're reading from abroad, please review your local jurisdiction.
When it comes to age, you have to be at least 18 years old.
KYC verification
Just like in any fintech app, you are required to complete a KYC onboarding process.
You must provide personal information such as your legal name, date of birth, SSN, and a few more things like your address and personal ID.
One thing you will notice is that depending on where you live, you will see a different onboarding process.
Sign-up bonus and promo codes
I'm personally not aware of any of the promo codes available for Kalshi, yet they do exist, and it's worth a quick search.
They also have an affiliate program, and if you learn how to use Kalshi and are responsible about how you share it with others, it's a good way to give it a go.
How to Fund Your Kalshi Account
Let me walk you through it.
Considering we're Joined Crypto first and foremost, Kalshi accepts a variety of cryptocurrencies.
These include networks and assets like USDC, PYUSD, and other stablecoins, along with Bitcoin (BTC), Ripple (XRP), Aptos, Solana (SOL), Ethereum (ETH), Base, Polygon, Arbitrum, Avalanche, Aptos, Optimism, Sei, and Sui.
The on-ramp options differ here, and crypto is still my favorite way to fund anything in fintech. Fast, transparent, and traceable.
Deposit methods and minimums
When it comes to crypto, the minimum requirement in terms of deposits is just above $10.
Again, if you're interested in depositing more money meaning more than $10 to learn how to use Kalshi, and want to make big bucks, simply look elsewhere and refer to the top folks doing so.
A reminder that this is an educational media site, and not a speculative company.
Do not play with money that your grandma could lose.
How to Place Your First Trade on Kalshi
Let's break down how you can get started with Kalshi.
First, I suggest you get familiar with a demo account.
Try it out.
It's the same thing as using your own money, and even if you don't like it, I once again suggest that you do not put in more than $10.
All the prediction markets are the same whether you practice on the demo account or with a real account.
Finding and reading a market
To be frank, there is no magic trick in terms of finding the right prediction events.
If you were to look at the leaderboard, you will notice that you could potentially copy trade the most profitable traders.
The issue with the latter is that copy traders, once they're spotted, others follow, pumping the event contract higher and consequently dumping on you.
Think of Kramer, what a lot of people consider a "top signal."
There's a reason that the market tanks every time he speaks.
Funny enough, the data speaks for itself. Notice how the reverse Kramer index is performing.
Careful with tailing folks with massive audiences, which are basically noise. This is exactly the dynamic we break down in our guide to KOLs, and why following one blindly can work against you.
Market orders vs. limit orders
A market order, for the most part, is a straightforward transaction, where you are basically buying the contract at a certain price, just like you would buy a stock.
A limit order is one where you're buying or selling the event contract at a certain price.
Understanding spread and slippage
When you buy an event contract, pay attention to the order book.
And here's why: the price you pay can increase as your order works through the available supply in the order book.
How to Parlay on Kalshi
A parlay, just like in a sportsbook, is simply combining two or more events into a single bet.
How to use Perps on Kalshi
Perpetual markets are spawning left and right. The issue that I have with them comes from analyzing the situation involving an influencer and trader named James Wynn.
He put in collateral of $30 to $40 million, and he was expecting that Bitcoin would go up to the point that he would cash out upwards of $1 billion.
The crazy part here is that even though James Wynn made money trading, he actually became a public figure after he announced his long position on Hyperliquid.
My belief is that exchanges keep an eye on the largest orders, to the point where they have to defend themselves.
Again, you should analyze how your collateral and the leverage that you use fit with all the perpetual orders in the market.
If you happen to have the highest perpetual order, whether it's a long or a short, expect exchanges to keep an eye on you.
If you're new to the world of fintech and crypto, I wouldn't recommend starting off with perps.
The demo account is always the best place to start if you're a newbie.
How to Practice with a Demo Account
This is pretty straightforward.
In fact, I don't even want to break it down.
I simply suggest opening a new tab on the Kalshi demo account right away and giving it a shot.
How Kalshi Fees Work
In this case, you should always pay attention to Kalshi's fees on the official website.
You can easily use the two below to calculate how much you're going to spend on fees.
Kalshi is a company that I really like, and therefore I don't mind helping them stay afloat and make a little money as we use a new, innovative product.
The product is so good that the company is already profitable despite still being at an early stage.
How to Cash Out on Kalshi
As an example, we did a little YES play on a sports prediction market.
Selling positions early
If you've ever tried your luck on a sportsbook, you will realize that you can also cash out early.
The issue is that at times, the sportsbooks will pause any plays and even your exits.
The cool part with prediction markets is that you can do an exit at any time.
When it comes to this, it's a better-designed product.
Withdrawing your money
First, you need to make your first deposit.
Second, you have to withdraw it to a traditional bank account, ideally one of the crypto-friendly banks that won't flag or freeze the transfer.
How to Make Money on Kalshi
The reality here is that if you were to make money on Kalshi, please remember that there's no house.
Meaning that if you win or lose, you are pretty much trading against somebody.
With that being said, there's no magic trick.
To make money on Kalshi, you have to be right.
Perhaps it's best to opt for prediction market events that you're educated in.
This is really for you to decide. Just look at the things you work on and that you like and give it a shot. Again, if you were to put more than $10, that's your fault.
To learn how to use Kalshi, $10 is plenty.
You can always opt to check out the leaderboard or the Kalshi Demo Environment.
And remember, if you lose, it's your fault. Do your own research, and don't play with what you can't lose.
Position sizing and risk management
I personally do not understand how someone could be searching to learn how to use Kalshi with more than a $10 bill.
Risk is basically a construct, meaning that you shouldn't play with what you can't afford to lose.
Common beginner mistakes to avoid
The most common mistake with any financial instrument is the fallacy of playing with more than you actually have.
If you're new here, that's totally okay. Once you check out other pieces, you will realize that we never suggest that you play with more than $10.
Playing with $1 million versus $10 is no different.
Trust me, I've lost a lot of money in my years in crypto.
For you to really belong to this industry, the amount of money that you put in really doesn't matter.
If you just tried out with $1, you basically joined crypto and any other fintech product out there.
Is Kalshi Safe and Legit?
The answer is yes.
Remember that there's a battle for the top of prediction markets.
The companies that are leading in the space are Kalshi, obviously, and others like Polymarket, Myriad, and even Coinbase and Gemini.
As mentioned before, Kalshi's advantage was, and still is, the CFTC, meaning that these are perhaps the most advanced in compliance.
And when it comes to anything in fintech, compliance is absolutely crucial to pursue the investment.
Kalshi vs. Polymarket: Quick Comparison
Before we do a deep dive, have a look at a previous write-up to get a closer look at how Polymarket works.
Here's a quick matrix to break it down.
With the tool we built above, you can easily test out either side.
Considering we are only testing out $10, and you have another $10 to spare, then give it a shot.
Frequently Asked Questions (FAQs)
There's still a lot to understand in terms of how prediction markets work. Luckily, we broke it down as simply as possible.
How old do you have to be to use Kalshi?
In the United States, which is the only country where Kalshi operates, you have to be 18 years old or older.
Some states work differently than others.
Always make sure that you're following your local jurisdiction, or you can get into trouble.
Working with things like a VPN is not something we recommend.
Follow the law and always remember that to learn how to use Kalshi, you don't need more than $10.
What is a limit order?
A limit order is basically when you define a future price and then automatically sell at it.
Meaning, if you buy an event contract that's priced at $10, then you can set a limit order to automatically sell at $8 or $15.
Just set the limit order and forget it.
Something that was actually built recently, and it's only available at Kalshi Pro.
Does Kalshi provide yield on deposits?
They do.
In fact, the money that you deposit today can give you a yield of up to 3.25%.
The interest is flat, based on the money that you deposit.
Your portfolio should be $250 or higher for you to take advantage of the yield.
Can you chat with others in Kalshi?
This might be one of the coolest parts of the entire product.
The fact that you can chat with others who are involved in the same market makes it way more interesting.
How does Kalshi make money?
Kalshi makes money through transaction revenue.
There's always a possibility, just like any fintech company, that they can create revenue through deposits.
With that being said, always make sure that you check the fees on Kalshi's website.
How do I cash out on Kalshi?
The answer varies. You either do it via a traditional bank or, my preferred option, which is crypto.
Is Kalshi legal in my state?
If you're in the US, chances are it's legally okay to use.
Make sure to tap into the terms and conditions page before you get started.
How does Kalshi payout work?
It's pretty simple. Actually, there are a variety of ways that you can make deposits and cash out.
The options are pretty big, actually. You can do it with pretty much any bank or crypto.
What is slippage on Kalshi?
It's basically the difference between the price of the event that you are about to purchase and where it actually settles. If you want the full breakdown of how slippage works more broadly, we cover it in a separate guide.
How many markets does Kalshi have?
The categories here keep increasing. There's not a fixed number, and you should always expect top entrepreneurs like Tarek Mansour or Luana Lopes Lara to keep scaling what, to me, is one of the north stars of prediction markets.
Can you parlay on Kalshi?
The answer is yes, something that was introduced in 2026.
Is Kalshi gambling?
Although there might be similarities, the way that these markets operate differs from betting houses.
We mentioned how the order books of these prediction markets balance each other.
You are not betting against the house. You're betting against other users.
How long does Kalshi take to pay out?
It really depends on what you connect in terms of payments.
In crypto, you can consider these payouts to be pretty fast.
If you are using a traditional bank, it is expected to take longer.
There's always the opportunity to pay a higher fee for faster checkout.
Conclusion
By now you should be aware of how it works; it's always a good idea to test out the market further.
We wrote a pretty similar piece about Kalshi's direct competitor, which happens to be the one that created prediction markets initially, Polymarket.
One of these important lessons that you will learn in fintech is how you can gain a competitive advantage by tapping into compliance on the greatest market in the world.
Which is the United States of America.
Despite Polymarket being the first to market, Kalshi is the prediction market that has gathered more traction than anybody else.
A mixture of doing incredible marketing campaigns across New York City, for instance, for elections, sports, and beyond, and beating Polymarket at the compliance game.
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