If you've heard about Kalshi and wondered whether it's legit, you're not alone. Prediction markets are still new to most people, and it's smart to ask questions before depositing money.
Short answer: Yes, Kalshi is legit. It's the first federally regulated prediction market in the US. Here's what that actually means.
Kalshi is regulated by the CFTC
Kalshi is a Designated Contract Market (DCM) regulated by the Commodity Futures Trading Commission (CFTC). This is the same agency that oversees futures exchanges like the CME.
What CFTC regulation means for you:
- Legal in the US: Unlike offshore betting sites, Kalshi operates legally for US residents (with some state exceptions).
- Funds are segregated: Customer funds are held separately from company funds.
- Audited and compliant: Kalshi must follow strict reporting and operational rules.
- Dispute resolution: There's a legal framework if something goes wrong.
This isn't a gray-area crypto exchange or an offshore sportsbook. Kalshi went through years of regulatory approval to operate.
How Kalshi works
Kalshi lets you trade on yes/no questions about real-world events. Examples:
- Will the Fed raise rates this month?
- Will it snow in NYC on Christmas?
- Will a specific bill pass Congress?
You buy contracts priced between $0.01 and $0.99. If you're right, the contract pays $1.00. If you're wrong, you lose what you paid.
It's not sports betting—these are event contracts on economics, politics, weather, and more.
Deposits and withdrawals
Kalshi uses real USD, not crypto. You can fund your account via:
- ACH transfer (free, 1–3 days)
- Wire transfer (faster, may have fees)
- Debit card (instant, small fee)
Withdrawals go back to your bank account. Most users report withdrawals processing within 1–3 business days.
What are the risks?
Kalshi is legit, but that doesn't mean it's risk-free:
- You can lose money. Prediction markets are speculative. Don't trade with money you can't afford to lose.
- Liquidity varies. Some markets are thin, which means wide spreads and slippage.
- Resolution rules matter. Contracts resolve based on specific sources and rules. Misunderstanding them can cost you.
These are trading risks, not platform risks. Kalshi itself is financially sound and regulated.
Kalshi vs Polymarket
People often compare Kalshi to Polymarket. Key differences:
- Regulation: Kalshi is CFTC-regulated. Polymarket is offshore and uses crypto.
- Currency: Kalshi uses USD. Polymarket uses USDC.
- Access: Kalshi is legal for most US residents. Polymarket blocks US users (officially).
- Liquidity: Polymarket often has deeper liquidity on political markets. Kalshi is stronger on economic events.
If you want to trade legally in the US with real dollars, Kalshi is the clear choice.
Getting started
To open a Kalshi account:
- Go to kalshi.com and sign up.
- Complete identity verification (required by regulation).
- Fund your account via ACH or card.
- Start trading.
There's no minimum deposit. You can start with $20 to learn how it works.
Using Alphascope with Kalshi
Once you're set up on Kalshi, Alphascope helps you find edges:
- News → See breaking stories linked to affected Kalshi markets, with AI impact scores.
- Predictions → Browse Kalshi and Polymarket side-by-side to spot price divergences.
The goal: spend less time searching for opportunities and more time trading with an edge.
FAQ
Is Kalshi a scam?
No. Kalshi is regulated by the CFTC, the same agency that oversees major US futures exchanges. It's a legitimate, federally licensed platform.
Can I trust Kalshi with my money?
Yes. Customer funds are segregated and held at regulated financial institutions. Kalshi is audited and must comply with CFTC rules.
Is Kalshi legal in my state?
Kalshi is legal in most US states. A few states have restrictions. Check Kalshi's site for the current list.
How is Kalshi different from gambling?
Legally, Kalshi offers "event contracts" regulated as derivatives, not gambling. Practically, you're trading on real-world outcomes with real market mechanics (order books, price discovery, exit before resolution).
What happens if Kalshi goes out of business?
Customer funds are segregated, so even in bankruptcy, your money is protected. This is a regulatory requirement.