Prediction markets are an exciting way to get cash payouts on your opinions. You can forecast sports outcomes, political results, or entertainment events by buying and selling shares based on your predictions.
Unlike traditional betting, prediction markets let you trade your opinions throughout the event, giving you more control over your investment.
In this guide, we’ll walk you through everything you need to know to stake in a prediction market.
Key Similarities Between Betting and Prediction Markets
Before we dive in, let’s quickly recap the similarities between betting and prediction markets:
1. Both involve wagering on future outcomes – You put money on a predicted result.
2. Risk and reward are at play – If your prediction is correct, you make a profit; if not, you lose.
3. Market dynamics influence outcomes – Prices (or odds) change based on new information and market demand.
How to Stake in a Prediction Market
1. Choose a platform
Prediction markets allow you to buy and sell shares based on the likelihood of future events, and receive cash payouts if you’re correct. Unlike other apps, there aren’t many legal prediction markets available. So when choosing one, go for a legal platform with good liquidity and market variety. A good platform should have a wide range of markets, from sports and politics to entertainment and finance. On GoWagr, there are lots of market varieties to choose from. High liquidity ensures you can easily buy or sell shares without drastic price changes.
2. Fund your account
Funding your prediction market account is the first step to start trading. Most platforms offer various payment methods, including bank transfers and cryptocurrency for more convenience and flexibility.
On GoWagr, you can fund your account using your Nigerian Naira or through your USDT. Once your account is funded, you can start buying shares in different markets. Always double-check the amount deposited and keep track of your balance to manage your trading effectively.
Learn More About: How to Fund Your GoWagr Wallet with Crypto (USDT)
3. Select a market to stake on
After funding your account, the next step is to choose a market to stake on. Prediction markets cover lots of events, from sports and politics to entertainment and finance.
To select a market, browse the available options on the app. Look for markets with active trading and recent updates, as these indicate higher liquidity and better chances of finding favorable odds. You can choose to trade markets with a short resolution time or invest in long-term markets.
Choosing the right market is how you increase your chances of making a profit, so take your time and make well-informed decisions.
4. Buy shares based on your prediction
Once you’ve selected a market, it’s time to buy shares based on your prediction. In prediction markets, shares represent your stake in a specific outcome. If you think an event will happen, buy “Yes” shares. If you think it won’t, buy “No” shares.
The price of each share reflects the probability of that outcome happening. For example, if the price of a share is 60%, it means the market estimates a 60% chance of that outcome, and its current price is 60 cents.
To buy shares, decide how much you want to invest and purchase shares at the current price. The goal is to buy low and sell high if the odds shift in your favor. If your prediction is correct when the event concludes, you’ll receive a payout based on the number of shares you hold.
Keep in mind that share prices fluctuate as new information comes in, especially for football markets where you can trade in real-time, so monitor the market regularly. You can also sell your shares before the event ends to lock in profits or cut losses.
Learn More About: How to Profit from Predictions on Real-World Events Online
5. Monitor and sell shares if needed
Prediction markets let you sell shares before the event concludes, which is a major advantage over betting.
After buying shares, keep a close eye on the market as prices can change based on new information or updates related to the event. If the odds move in your favor, consider selling your shares to secure a profit.
On the other hand, if the market moves against your prediction, you might want to sell to minimize losses. The key is to stay informed and act quickly when market conditions change.
6. Collect your winnings
Once the event concludes and your prediction is correct, your shares will become $1 per share. Your total payout will be the number of shares you own multiplied by the final share value.
That is, if you invest $10 to buy 100 shares, when the market resolves, it will be multiplied by $1, giving you a $100 payout.
The funds will be credited to your GoWagr wallet, and you can withdraw your winnings or reinvest in other markets.
Conclusion
Unlike traditional betting, prediction markets allow you to trade shares dynamically, making them more like stock markets than gambling. If you’re looking for a smarter, data-driven way to share your opinions, download the GoWagr app on the App Store or Play Store to start exploring prediction markets today.
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