Key Points

• Prediction markets tend to encourage short-term, speculative trading rather than long-term investing.

• When making predictions about specific cryptocurrencies, it’s far too easy to let emotions take over the decision-making process.

• Data from prediction markets can be used to obtain real-time statistical probabilities of events occurring.

• These 10 stocks could mint the next wave of millionaires ›

At times, making crypto predictions on platforms such as Polymarket or Kalshi can feel a lot like sports betting. Instead of rooting for your hometown team to come away with the victory, you’re rooting for your favorite altcoin to hit a certain price target.

But here’s the thing: Treating crypto trading like sports…