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 betting could be the fastest way to lose money. If you’re planning to build a long-term nest egg for retirement, there’s a better way to use prediction markets to your advantage.

The wrong way to use prediction markets

It’s staggering how many different ways you can bet on Bitcoin (BTC 1.08%) these days. You can predict that it will hit a certain price target by a certain date. You can predict that a certain event will…