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Prediction markets are really hot right now. In simple terms, they allow you to bet on the same event across different platforms — which is a perfect opportunity for arbitrage.
Imagine this scenario: two platforms are running point-earning activities, and just by participating in predictions, you can earn points to exchange for airdrops later. The key? You can buy "Will happen" on Platform A and "Won't happen" on Platform B — no matter who is right in the end, you won't lose money. Instead, you earn points on both sides.
**How to operate?**
First, find the exact same prediction question on both platforms. For example, both have the question: "Will Bitcoin break $100,000 tomorrow?"
Then, check the prices — this is the most critical step. In prediction markets, when the answer is correct, the token will eventually be worth 1 dollar. The algorithm is simple:
**If (Platform A's Yes price) + (Platform B's No price) < 1 dollar, then it's a guaranteed profit!**
For example, actual situation:
- Platform A's Yes quote: $0.942
- Platform B's No quote: $0.046
- Total cost: $0.988
Result: you earn $0.012 and get points from both sides.
Once the event ends, the money is automatically credited to your account, and you can repeat the process. Points keep increasing this way.
**But don't forget these pitfalls:**
Every transaction has fees, which must be included in the cost. More importantly — make sure the judgment criteria on both sides are exactly the same. If the standards differ, you might lose on both sides. Also, prediction markets have different legal statuses in different regions; some are considered gambling, others are legal. Be sure to understand the regulations in your area before participating.
This strategy is about using cross-platform hedging to earn points, then waiting for airdrops.