Platforms
How to start trading on Kalshi
Kalshi is the easiest US-regulated prediction market to start with — fiat banking, traditional account flow, no crypto. Here is the full setup walkthrough.
Kalshi is a CFTC-regulated derivatives exchange. From a setup standpoint, it works more like Robinhood than like a crypto platform. If you have ever opened a stock brokerage account, this will feel familiar in a way Polymarket does not.
Step 1: Verify you are eligible
Kalshi is currently available to verified residents of 42+ US states. Some states with more restrictive gaming laws (e.g. Nevada, parts of New Jersey) have ongoing legal disputes about Kalshi's status. Check the Kalshi site for your state's current availability before creating an account.
You must be 18 or older. Kalshi requires a US Social Security Number for tax reporting — winnings are reported on a 1099 form like any other US investment income.
Step 2: Create your account
Sign up with email and a password. The account creation flow asks for full legal name, SSN, address, and date of birth. This is the standard "Know Your Customer" requirement for regulated US financial services.
Step 3: Fund your account
Kalshi offers three deposit methods:
- ACH (bank transfer): Standard deposit. Funds usually clear in 1–3 business days for first-time deposits, faster after that. No fees.
- Debit card: Instant deposit. Slightly higher friction during verification but useful when you want to act on something immediately.
- Wire transfer: For larger deposits. Same-day or next-day, depending on your bank.
Start small. $100–$500 is plenty for your first month. Resist the temptation to deposit in proportion to your conviction — your conviction will be calibrated by losing real money.
Step 4: Find a market
Kalshi's market browser organizes contracts by category: Sports, Politics, Economics, Climate, Tech, and others. Each market has a clear question, resolution date, and resolution criteria written out. Read the criteria. Markets resolve based on what's written, not what you assumed.
Step 5: Place your first trade
Click into a market. You'll see Yes and No prices, both quoted in cents. Buying Yes at 65 cents means: if you're right, you collect $1.00 per contract (so 35 cents profit per contract). If you're wrong, you lose your 65 cents.
Two order types matter:
- Market order: Take the best price right now. Easy, instant, and potentially expensive on thinly traded markets.
- Limit order: Specify the price you're willing to pay. Wait for someone to fill it. Lower cost, requires patience.
Use limit orders by default. Even on liquid markets you'll save 1–2 cents per contract, which compounds quickly.
Step 6: Manage and exit positions
You can sell before resolution. If a market moves in your favor — say the contract you bought at 65 cents now trades at 80 cents — you can sell to lock in 15 cents profit per contract without waiting for resolution.
This is more important than it sounds. Exiting at favorable prices is how professional traders manage risk. Holding to resolution is fine if you're confident, but if the thesis has been confirmed and the price reflects it, taking the gain is often the right call.
Step 7: Taxes
Kalshi sends a 1099-B form at year-end summarizing your trades for IRS reporting. Profits are typically treated as short-term capital gains (taxed at your ordinary income rate). Keep your own records of trades for at least three years. Not legal or tax advice — talk to a CPA if you trade significant volume.