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Switzerland Crypto Tax 2025: A Complete Guide

By: WEEX|2025-10-13 00:52:47
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Switzerland has established itself as a global leader in cryptocurrency innovation and regulation, making it one of the most crypto-forward countries in the world. With favorable market conditions, comprehensive financial services, and a progressive tax framework, both individuals and businesses are choosing Switzerland as their hub for digital asset activity. However, despite its crypto-friendly reputation, Switzerland enforces strict rules on the taxation and reporting of cryptocurrencies to ensure transparency and fairness. This comprehensive guide demystifies Switzerland’s crypto tax landscape for 2025, covering everything from applicable tax rates, transaction scenarios, and reporting obligations to helpful tools—like the WEEX Tax Calculator—that make staying compliant as user-friendly as possible. Whether you’re a casual HODLer, professional trader, miner, NFT enthusiast, or DeFi participant, this guide arms you with the practical knowledge and examples you need to approach this tax season with confidence.

Do You Pay Cryptocurrency Taxes in Switzerland?

Switzerland’s attractive tax regime does not mean digital assets are entirely free from tax. If you own, trade, or earn cryptocurrencies, you must generally report your activities to the Swiss Federal Tax Administration (FTA) and local cantonal authorities. The specific crypto taxes you pay depend on your circumstances, such as whether you qualify as a private investor or a self-employed trader.

Private Investor vs. Trader: The Key Distinction

For tax purposes, Switzerland separates individuals into two categories: private investors and self-employed traders. Your classification determines which taxes apply to your crypto activity.

Criteria

Private Investor

Trader/Self-Employed Business

Holding Period≥6 monthsNot required
Trading Turnover<5x initial holding>5x initial holding
Net Capital Gain (as % of income)<50%≥50%
Debt FinancingNoPossible
Use of DerivativesHedging onlyFor speculation/other
Capital Gains Tax LiabilityExemptTaxable

Important: Failing to meet even one private investor criterion may result in being classified as a trader, with higher tax liabilities. Cantonal authorities have final discretion.

Which Crypto Activities Are Taxable?

Switzerland distinguishes between several types of crypto activity for tax purposes:

  • Wealth holdings (HODLing): Subject to Wealth Tax
  • Income: Mining, staking, airdrops, earned crypto, certain DeFi activities
  • Capital gains: Generally tax-free for private investors, but taxable for traders/businesses

How Much Tax Do You Pay on Crypto in Switzerland?

The amount of tax you pay on crypto depends on your activities, your taxpayer status, and where you live (since cantonal rates apply). Below, we outline common scenarios and their tax treatment.

Switzerland Crypto Tax Treatment by Scenario

Activity

Private Investor

Trader/Business

Buying crypto with fiat/cryptoNot taxableNot taxable
Holding (HODLing)Subject to Wealth TaxSubject to Wealth Tax
Gifting/Donating cryptoSubject to Gift/Inheritance TaxSubject to Gift/Inheritance Tax
Selling/trading for capital gainTax-freeSubject to Income Tax
Earning crypto (salary, mining, staking, airdrop)Subject to Income TaxSubject to Income Tax
Transferring crypto between own walletsNot taxableNot taxable
Loss or theftNondeductibleMay offset against taxable gains
DeFi rewards income (interest/yield farming)Subject to Income TaxSubject to Income Tax
Borrowing/repaying in DeFiNot taxableNot taxable

Example: If you are a Zurich resident who bought 1 BTC in January 2024 for CHF 30,000 and sold it in July 2025 for CHF 50,000—with no trading on margin, no debt financing, and capital gains under 50% of your annual income—you qualify as a private investor. The CHF 20,000 gain is completely tax-free, but you must declare the value of your BTC holding as of 31 December each year for Wealth Tax.

Canton-Specific Tax Considerations

Every canton sets its own rates for Wealth Tax, Gift Tax, and sometimes special allowances. For example, the canton of Zug, famous for its “Crypto Valley,” offers higher Wealth Tax allowances and lower rates compared to Bern or Geneva. Always verify current local rules.

Can the Swiss Federal Tax Administration (fta) Track Crypto?

Yes, the FTA has multiple avenues for tracking crypto-related financial activity. This includes data received through cooperation with European partners under the Anti-Money Laundering Directives and direct requests to exchanges and financial intermediaries. The increasing prevalence of KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations means fewer assets go unnoticed today than ever before.

How Does the FTA Track Crypto?

  • Exchange Reports: Swiss and European exchanges provide transaction and account data to authorities.
  • International Cooperation: Through the EU’s Sixth Anti-Money Laundering Directive (6AMLD) and bilateral agreements, cross-border data is routinely shared.
  • Blockchain Analysis: Authorities increasingly use sophisticated analytics to track wallet activity and identify suspicious or undeclared transactions.

Analogy: Just as the Swiss banking system no longer offers “secret” accounts, holding crypto on regulated platforms is increasingly transparent. Trying to hide crypto income or holdings risks significant penalties if detected.

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How Is Crypto Taxed in Switzerland?

Crypto taxation in Switzerland involves three primary forms of taxation: Wealth Tax, Income Tax, and (in select cases) Capital Gains Tax.

Wealth Tax

Wealth Tax applies annually to the total value of your assets—including crypto holdings—on December 31. This is assessed at both the cantonal and municipal level.

Canton

Wealth Tax Rate (approx.)

Individual Allowance (CHF)

Zurich0.1%–0.3%77,000
Zug0.05%–0.2%100,000
Geneva0.3%–1%82,000
Basel-Stadt0.3%–0.7%70,000
(Most Cantons)0.3%–1%~100,000
  • Value your crypto at the FTA-published value or, if none exists, use your exchange’s closing value on December 31.
  • Only total assets exceeding the applicable allowance are taxed.
  • Example: If your household’s total assets (including BTC and ETH) sum to CHF 250,000, and your canton’s Wealth Tax threshold is CHF 100,000, only CHF 150,000 is taxable at your canton’s rate.

Income Tax

You incur Income Tax on crypto when you earn it—such as from salary, services, mining, staking, certain airdrops, and some DeFi activities. It’s also applicable to traders dealing crypto as a business.

  • Income is valued in CHF at receipt and included in your taxable income for that year.
  • Rates vary by canton and municipality, in addition to federal tax.

Income Tax Scenarios

Source of Crypto Income

Tax Treatment

Employment (salary paid partly in crypto)Income Tax
Freelance payments in cryptoIncome Tax
Mining rewardsIncome Tax
Staking/yield farming rewardsIncome Tax
Airdrops (with expectation of reward)Income Tax
Gifts/DonationsGift/Inheritance Tax

Example: Suppose you mined coins valued at CHF 3,000 in 2025 in Zug. This CHF 3,000 must be reported as self-employment income. If you later sell the mined coins, there is no capital gains tax on additional value unless you are a trader.

Capital Gains Tax

Capital Gains Tax generally does not apply to private individuals if they meet all private investor criteria. Only traders and businesses pay tax on crypto capital gains, taxed at their income tax rate.

Investor Status

Capital Gains Tax Treatment

Private InvestorExempt
Trader/BusinessTaxable as income

How the Swiss Tax System Works for Crypto

Switzerland uses a layered tax structure:

  • Federal Income Tax: Set by the central government, progressive based on taxable income.
  • Canton Income Tax: Varies by canton and often by municipality.
  • Municipal Income Tax: Usually follows canton base rates.

For crypto, your location can make a substantial difference in overall liability.

Switzerland Income Tax Rate

Understanding Switzerland’s income tax structure is essential to calculating crypto liability, especially if you earn, trade, or mine crypto.

Federal Income Tax Rates 2025

Taxable Income Over (CHF)

Up to (CHF)

Base Tax (CHF)

Rate on Excess (%)

015,000––
15,00032,800–0.77
32,80042,900137.050.88
42,90057,200225.902.64
57,20075,200603.402.97
75,20081,0001,138.005.94
81,000107,4001,482.506.60
107,400139,6003,224.908.80
139,600182,6006,058.5011.00
182,600783,20010,788.5013.20
783,200 +–90,067.7011.50
  • Canton and municipality taxes: These are on top of the federal rate and vary by location, often adding 10%–30% more to the total.
  • Use the total income (including fiat and fair-market-value of any crypto income) to compute your liability.

Real-World Example

You received CHF 50,000 in employment income, CHF 3,000 from mining, and made CHF 10,000 on trading as a private investor. Only the CHF 3,000 mining income is taxable (plus regular employment income). You will not pay Capital Gains Tax on the CHF 10,000 capital gain if you qualify as a private investor, but Wealth Tax applies to your crypto holdings’ value at year-end.

Crypto Losses in Switzerland

Losing money or coins in crypto brings varied tax consequences, depending on your status:

Capital Losses

Scenario

Private Investor

Trader/Business

Capital losses (trading loss, price drop)Not deductibleDeductible against taxable gains
Lost/stolen coinsNot deductiblePossibly deductible (subject to proof)

Example: A casual investor whose hardware wallet was lost cannot deduct the value as a loss. However, a registered business or trader may, if they can substantiate their claim (e.g., through police reports).

Defi Taxation in Switzerland

DeFi (Decentralized Finance) is an evolving space, and Swiss tax authorities have yet to issue much detailed guidance. However, a few principles hold true:

Key DeFi Activities and Their Tax Treatment

DeFi Activity

Private Investor

Trader/Business

Earning interest/yield (e.g., yield farming, staking)Income TaxIncome Tax
Receiving airdropped tokensIncome TaxIncome Tax
Providing liquidityGenerally not taxableNot taxable
Borrowing/repaying/projecting as collateralNot taxableNot taxable
Margin, options, or derivatives tradingNo capital gains tax if private investorIncome Tax if trader
  • In most cases, income streams (staking, airdrops, yield farming) are taxed as income when received, at fair market value (in CHF).
  • Transactions such as providing or removing liquidity, borrowing, or repaying, are typically not taxable for private investors.

Example

If a private investor earns 0.2 ETH from liquidity mining worth CHF 400 on the day of receipt, that CHF 400 is added to taxable income. The value of new tokens must also be included in end-of-year Wealth Tax calculations.

Record-keeping, Compliance, and Reporting

Required Records for Crypto Tax Reporting

Swiss law requires you to maintain comprehensive records for at least five years. These must include:

  • Dates and values (in CHF) for all crypto transactions
  • Type and purpose of each transaction (trade, earn, transfer, etc.)
  • Counterparty details (including wallet address, if relevant)
  • Source of asset valuations (preferably reputable exchanges)

Cost Basis Methods in Switzerland

For those subject to capital gains calculations (primarily traders/businesses), allowed methods include:

  • ACB (Average Cost Basis)
  • FIFO (First-In, First-Out)
  • LIFO (Last-In, First-Out)
  • HIFO (Highest-In, First-Out)

Private investors are generally exempt since capital gains are not taxed.

When and How to File Crypto Taxes

  • Annual tax return required by March 31, covering the previous calendar year
  • Most cantons permit a free extension to September 30
  • Declare all crypto income and assets in the appropriate sections
  • File appropriate cantonal forms (see below), attaching documentation as necessary

Canton

Crypto Declaration Form/Method

ZurichAs other assets, attach wallet proof
ZugCode 160 (income), 600 (assets)
BernForm 3 (Securities/Assets)
Basel-StadtCode 835
LucerneAs other assets, enclose wallet proof
St. GallenList of securities with date

Upon submission, your canton will calculate liability and issue an assessment. Tax must typically be paid within 30 days.

Tax Optimization Strategies

  • Rigorously document and track all allowable deductions and allowances
  • Consult with a tax professional if your activity is complex or high volume
  • Consider charitable giving strategies (sell crypto tax-free, then donate fiat and claim deduction)

Crypto Transaction Scenarios and Their Tax Treatment

Scenario

Tax Treatment

Buying crypto (any method)No tax
Selling cryptoNo capital gains tax if private investor; income tax if trader
Crypto to crypto tradeSame as above
Transferring between walletsNo tax
Spending crypto on goodsNo tax if private investor
Gifting cryptoGift tax (canton dependent)
Donating cryptoPotentially tax-deductible if to Swiss charity, subject to limits
Mining or stakingIncome tax on value at receipt
Receiving airdropIncome tax on market value
NFTsTax status varies; see below

NFTs and Their Taxation

  • Collecting/trading NFTs: Not specifically addressed, but generally considered tax-free for private investors
  • Creating/selling NFTs: Treated as self-employment income in most cantons
  • Minting NFTs: Not taxable for private investors; may be taxable as income if part of a business

Weex: Reliability and Innovation in Crypto

When navigating Switzerland’s nuanced crypto tax landscape, choosing a reliable and innovative trading platform is crucial for effective record-keeping, risk management, and regulatory compliance. WEEX is recognized for its user-centric approach and advanced trading features, making it a robust choice for anyone active in Switzerland’s digital asset market. The exchange’s secure infrastructure and transparency align with Swiss expectations, ensuring users enjoy both technological innovation and the peace of mind that comes from best-in-class practices.

Weex Tax Calculator—your Essential Tax Companion

Staying compliant with Switzerland’s complex crypto tax rules is significantly easier with accurate, automated tools. The [WEEX Tax Calculator](https://www.weex.com/tokens/bitcoin/tax-calculator) allows you to generate precise annual reports, track your holdings’ value against official reference rates, and review taxable events in your portfolio. Simply connect your WEEX account to access historic transaction data and export it in formats compatible with Swiss tax authorities. Disclaimer: While the WEEX Tax Calculator simplifies documentation and calculation, final filing remains your responsibility. Always check your reports for accuracy and consult a tax advisor for complex or high-value activity.

Frequently Asked Questions About Switzerland Crypto Tax

What cryptocurrencies are subject to tax in Switzerland?

All cryptocurrencies and cryptoassets—such as Bitcoin, Ethereum, stablecoins, altcoins, and NFTs—are subject to Wealth Tax. If crypto is earned (through mining, staking, airdrops, services, etc.), the fair market value in CHF is also subject to Income Tax. The specific list of recognized coins is updated annually by the FTA, but all mainstream assets, as well as any digital token traded on centralized exchanges, fall under tax authority supervision.

How do I calculate my crypto tax liability?

To calculate your Swiss crypto tax in 2025:

  • Inventory all crypto assets as of December 31. Use FTA-published rates or reputable exchange valuations.
  • Identify all income events: Convert the fair market value of crypto earned via mining, staking, airdrops, or as salary directly into CHF and include it as part of your taxable income.
  • Classify yourself correctly: Check if you qualify as a private investor (potentially exempt from capital gains) or a trader/business (subject to income tax on gains).
  • Apply your canton’s Wealth Tax rates and allowances to your net assets.
  • Use automated tools like the WEEX Tax Calculator for data accuracy.

What records should I keep for crypto taxes?

Retain for at least five years:

  • Transaction dates and amounts
  • CHF value at transaction time
  • Nature of the transaction (buy, sell, transfer, earn, etc.)
  • Name or address of counterparties, particularly for large or business-related transactions
  • Annual wallet and exchange balances (screenshots/statements)

Accurate, well-organized documentation is critical if authorities request detailed proof.

When are crypto taxes due in Switzerland?

The Swiss tax year is the calendar year (January 1 to December 31). Your annual tax return—including crypto asset and income disclosures—must be submitted by March 31 of the following year. Most cantons permit a free extension request, typically to September 30. Tax assessment is issued after filing, with a 30-day window for payment.

What happens if I don’t report crypto taxes?

Failure to properly report crypto holdings or income can result in significant penalties, back taxes, and—in serious cases—criminal prosecution. With expanding international information-sharing and blockchain traceability, undeclared crypto is increasingly risky. The FTA may also retroactively reassess prior years if undisclosed assets are discovered, potentially with interest and substantial fines. Always err on the side of transparency and keep thorough records.

 

 

Switzerland’s robust tax regime balances encouragement of crypto innovation with firm reporting and taxation expectations. By understanding your responsibilities, leveraging compliant platforms like WEEX, and utilizing reliable tools, you can confidently manage your digital assets while staying on the right side of the law in 2025 and beyond.

 

 

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Tokenized Stocks 101: When the World's 7+3 Most Valuable Companies Become Crypto's Underlying Assets

The trend of tokenizing U.S. stocks is unstoppable: U.S. stocks and related ETFs are being extensively tokenized, allowing users to freely buy and sell these “tokenized stocks” on-chain, enabling 24/7 trading, low barriers to entry, and highly combinable on-chain asset allocation.

Among all tokenized U.S. stock assets, the most liquid and most representative of the “U.S. stock market ethos” are the seven tech giants known as the “Magnificent Seven”—Apple (AAPL), Microsoft (MSFT), NVIDIA (NVDA), Amazon (AMZN), Google’s parent company Alphabet (GOOGL), Meta (META), and Tesla (TSLA).

They account for over 80% of the volatility in the U.S. stock market.

In today’s guide, we’ll explore the overall structure of the U.S. stock market, the business evolution of the Magnificent Seven, and finally discuss how three upcoming “rising stars” set to go public will reshape the market.

I. The U.S. Stock Market: A Bull Market Dominated by the “Magnificent Seven”

The U.S. stock market, benchmarked by the S&P 500 Index, has a total market capitalization exceeding $50 trillion, but it is highly concentrated among tech giants. As of April 2026, the “Seven Sisters” collectively accounted for approximately 33.7% of the S&P 500’s weighting (up from just 12.5% in 2016), with a combined market capitalization of about $20 trillion. The top 10 stocks sometimes account for nearly 40% of the index.

Simply put: buying an S&P 500 ETF ≈ buying the “Seven Sisters.”

For ordinary investors, a straightforward question arises: what does this actually mean? The most intuitive answer is that whether you make money or not depends largely on these seven companies.

This structure gives rise to the typical “long bull, short bear” characteristic of the U.S. stock market:

Dual-engine growth driven by earnings and buybacks: These giants consistently maintain free cash flow profit margins of 15%+, combined with annual stock buybacks in the hundreds of billions of dollars, creating a structural bull market characterized by “a floor on the downside and leverage on the upside.”Highly simplified macro-level pricing: The Fed’s interest rate path determines the denominator of valuations, the pace of AI commercialization determines the numerator of earnings, and global dollar liquidity determines market elasticity.Bear markets feature “sharp declines and gradual recoveries”: When macroeconomic headwinds or liquidity tightening occur, indices typically experience a rapid 10%–15% pullback within 1–3 months. However, passive fund allocations and institutional bottom-fishing quickly restore the upward trend, with bear market cycles generally lasting no longer than six months.

For on-chain investors, understanding this structure implies that trading U.S. RWA essentially involves trading the discounted cash flows of a few core assets and macro liquidity premiums. If systemic volatility occurs in the broader market, on-chain prices typically revert to their anchored levels within 1–3 minutes through arbitrage mechanisms.

II. A Detailed Breakdown: The Deep Integration of the “Seven Sisters” and AI

1. NVIDIA—The Computing Power Provider of the AI Era

NVIDIA is the world’s highest-valued publicly traded company and the investment with the fastest profit growth, the most direct benefits, and the greatest certainty in the current AI wave. It is also closely tied to the AI sector of the cryptocurrency market.

- Main Business: GPU chips, with the data center business accounting for approximately 91% of the company’s total revenue.

- Market Capitalization: Approximately $5.09 trillion as of the end of April 2026, with a weighting of about 7.85% in the S&P 500.

- Performance: GPUs based on the Blackwell architecture hold a near-monopoly in the global AI training sector. CEO Jensen Huang has publicly stated that the company’s market capitalization could reach $10 trillion in the future.

Click to Trade NVDAON/USDT

2 Apple — Consumer Hardware × Service Ecosystem Empire

Apple is the world’s second-largest company by market capitalization. Its core business consists of the iPhone, a “super product,” coupled with a service ecosystem spanning over 2.5 billion active devices.

- Main Business: iPhone sales + monetization of the service ecosystem (App Store, Apple Music, iCloud, etc.).

- Market Cap: Approximately $3.97 trillion as of the end of April 2026, with a weighting of about 6.12%.

- Performance: Q1 FY2026 revenue of $143.8 billion, up 16% year-over-year; EPS of $2.84, up 19% year-over-year, exceeding expectations across the board. Services revenue surpassed $30 billion for the first time.

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3. Microsoft — The “Shovel Seller” of Cloud Computing × AI

Microsoft has transformed from a traditional software company selling Windows and Office into a cloud computing and AI integration giant centered on Azure cloud services.

- Core Businesses: Azure cloud services + Copilot AI office assistant + enterprise software.

- Market Cap: Approximately $3.15 trillion as of the end of April 2026, with a weighting of about 4.86%.

- Financial Results: Q3 FY2026 revenue of $82.9 billion (up 18% YoY), EPS of $4.27 (exceeded expectations); Microsoft Cloud revenue: $54.5 billion (up 29% YoY); annualized AI revenue run rate exceeded $37 billion (up 123%). Demand for AI Copilot and Azure remains strong, but AI investments have put slight pressure on gross margins.

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4 Amazon — E-commerce Empire × Cloud Computing King

Amazon is the most diversified of the “Big Seven,” but its true profit engines are AWS (cloud computing) and advertising.

- Core Businesses: E-commerce (traffic base) + AWS Cloud (profit core) + Advertising (fastest-growing major business).

- Market Cap: Approximately $2.83 trillion as of the end of April 2026, with a weighting of about 4.37%.

- Financial Results: Q1 2026 revenue of $181.5 billion (up 17% YoY), EPS of $2.78 (beat expectations); AWS cloud business revenue of $37.6 billion (up 28% YoY, the fastest growth in 15 quarters). AWS accounts for only about 17–18% of total revenue but contributes over 60% of operating profit; Annualized revenue from the advertising business has exceeded $70 billion, with growth exceeding 20%.

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Alphabet, Google’s Parent Company—The “Trio” of Search × AI × Cloud

Alphabet holds nearly 90% of the global search engine market share, while also owning Google Cloud, the world’s third-largest cloud platform, and DeepMind, the leading AI research organization.

Core Businesses: Search Advertising (Cash Cow) + Google Cloud (Rapid Growth) + AI Business.Market Cap: Approximately $4.20 trillion combined, with a combined weighting of about 6.51%.Performance: Q1 2026 revenue of $109.9 billion (up 22% YoY), EPS of $5.11 (significantly beating expectations); Google Cloud revenue of $20.0 billion (up 63%).

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6 Meta — The AI Advertising Machine of Social Media

After navigating the “metaverse slump” of 2022, Meta staged a strong rebound in 2025 driven by AI advertising.

Core Business: Social media advertising across the Facebook, Instagram, and WhatsApp ecosystem.Market Cap: Approximately $1.70 trillion as of the end of April 2026, with a weighting of about 2.62%.Performance: Daily active users (across the entire suite) reached 3.58 billion, continuing to grow even at this massive scale. Annualized revenue from the AI advertising automation tool Advantage+ has reached $60 billion, with AI-driven ad impressions growing by 18% and average ad prices rising by 6%.

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Tesla — The Narrative King: From Selling Cars to Selling the “Future”

Tesla is the most unique of the “Seven Sisters”—there is a significant tension between its actual financial performance (car sales) and its capital market narrative (autonomous driving + robotics).

Core Businesses: Electric vehicle manufacturing + energy storage + Full Self-Driving (FSD) system + Optimus robot.Market Cap: Approximately $1.40 trillion as of the end of April 2026, with a weighting of about 2.1% .Performance: 2025 marked the first full-year revenue decline, down approximately 3%; the market is watching for signs of recovery following persistently weak delivery numbers.

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It is worth noting that the Q1 2026 earnings season has reached its peak—on April 29–30, Amazon, Alphabet, Microsoft, and Meta reported strong results, with Apple following suit the next day. The short-term impact of these earnings reports on stock prices is evident. However, overall, the “Big Seven” are expected to see total Q1 earnings grow by approximately 14.5% to 20.3% year-over-year, remaining the primary drivers of overall earnings growth for the S&P 500.

Further Reading: RWA Eco Week: Share $60,000!

III. A New Variable Deserves Close Attention: The Three Mega IPOs of 2026

The landscape of the “Seven Sisters” is not set in stone. In 2026, three of the largest private tech companies in history are lining up for IPOs—once they go public, they may not only redefine the “Seven Sisters” but also bring about a systemic disruption to the liquidity structure of global capital markets.

We previously discussed this in our article, “How the Three Most Valuable IPOs of 2026 Will Ignite a New RWA Narrative?”:

SpaceX — The Space Economy

Launch missions and Starlink (satellite internet) account for the vast majority of revenue, with combined revenue for these two businesses projected to exceed $20 billion in 2026. SpaceX has quietly filed for an IPO, planning to go public around June 2026, with its target valuation raised from an earlier $1.75 trillion to over $2 trillion.

OpenAI — The King of AI Applications, Parent Company of ChatGPT

As the pioneer of generative AI, OpenAI’s annualized revenue has surged to $25 billion. OpenAI plans to go public as early as the fourth quarter of 2026, with a target valuation of approximately $1 trillion.

Anthropic — AI Safety Company, Developer of the Claude Model

As OpenAI’s main rival, Anthropic positions itself as a provider of “safe and reliable AI.” It has attracted significant investment from Amazon and Google, with a valuation pegged at $350 billion, making it a darling of the enterprise AI market. Anthropic is considering an IPO as early as October of this year, targeting a valuation of approximately $900 billion.

However, all three of these soon-to-be-listed companies are currently operating at a loss. Under the S&P 500’s inclusion criteria (which require four consecutive quarters of profitability), they cannot be passively included in major indices in the short term, meaning they lack the automatic buying support from trillions of dollars in passive investment funds.

SpaceX’s strategy is to list on the Nasdaq and seek inclusion in the Nasdaq-100 index as soon as possible. Nasdaq, for its part, is proposing new rules to help large-cap new companies like SpaceX gain rapid index inclusion. Once included in the NASDAQ-100 Index, SpaceX’s stock would directly enter the investment universe of passive funds and ETFs, attracting substantial holdings from both institutional passive investors and retail investors.

IV. Conclusion: Investment Considerations Following the On-Chain Integration of U.S. Stocks

With the entry of top-tier institutions like Nasdaq and the NYSE, RWA is transitioning from a niche narrative to a core topic in mainstream finance. The RWA tokenization products from the “Seven Sisters” serve as the best “ambassadors” for this trend, providing the crypto industry with compelling arguments to persuade mainstream investors.

It is foreseeable that the combination of tokenization and DeFi composability will give rise to entirely new financial scenarios, such as pre-IPO subscription trading, hedging, yield aggregation, collateralized lending, and arbitrage strategies. On-chain stocks will evolve from mere trading instruments into a full layer of financial infrastructure.

Although the integration of cryptocurrencies and RWA is deepening, leading to occasional convergence in price performance, fundamental and technical analysis of the stock market may still differ from that of cryptocurrencies. When purchasing tokenized stocks on-chain, users must still ask themselves the same questions they would in a traditional brokerage account:

What is this company actually worth? Is the current price undervalued?

As the Q1 2026 earnings season unfolds and the countdown begins for three of the largest IPOs in history, the market is rewriting these answers one by one—and we will continue to follow the story.

TradFi vs DeFi: Key Differences and Why It Matters in 2026

Key TakeawaysTradFi (Traditional Finance) relies on centralized institutions like banks, regulators, and brokersDeFi (Decentralized Finance) uses blockchain and smart contracts to enable peer-to-peer trading, lending, and borrowingTradFi offers stability and regulation; DeFi offers openness and innovationThe future is convergence, not replacement – a hybrid system where both coexistTrade DeFi tokens on WEEX to gain exposure to the growing decentralized finance ecosystemIntroduction

The financial world is evolving. To understand where money is heading, you first need to understand TradFi vs DeFi. Traditional finance (TradFi) refers to the existing financial system – banks, stock markets, bond markets, venture capital, and hedge funds. It is built around centralized institutions that manage money, provide services, and enforce rules. Decentralized finance (DeFi) developed as an alternative. Instead of relying on banks or brokers, DeFi uses blockchain, smart contracts, and open networks to let people trade, lend, and borrow directly. Some see TradFi vs DeFi as a competition. In reality, they are more likely to coexist – and increasingly overlap. This article breaks down the key differences, challenges, and future of both systems, and how you can trade DeFi tokens on WEEX.

What Is TradFi? Key Features

Traditional finance (TradFi) is the financial system we interact with every day. It includes:

Banks (savings, loans, mortgages)Stock markets (equity trading)Bond markets (debt instruments)Venture capital and hedge fundsInsurance companies

Key features of TradFi:

FeatureDescriptionCentralized structureRelies on institutions like banks, regulators, and investment firmsTraditional banking systemBanks operate under licenses issued by regulatorsStrong regulationKYC, capital requirements, and liquidity standards enforcedUser protectionsDeposit insurance, fraud prevention, legal recourse

TradFi depends heavily on trust in these organizations. This ensures stability and protection, but also limits who can enter the market.

What Is DeFi? How It Differs

Decentralized finance (DeFi) was developed as an alternative to TradFi. Instead of relying on banks or brokers, DeFi uses blockchain technology and smart contracts.

Key features of DeFi:

Decentralized by design – Removes intermediaries; transactions execute through smart contractsCrypto-native system – Runs on digital assets, not fiat currencyFewer restrictions – Anyone with a wallet can access DeFiLower barriers to entry – No credit checks or minimum balancesHigher risk, higher openness – Innovation is easier, but scams and exploits are more common

Popular ethereum.org/en/defi/">DeFi applications include decentralized exchanges (DEXs) like Uniswap, lending platforms like Aave, and yield farming protocols.

TradFi vs DeFi: Head-to-Head ComparisonAspectTradFiDeFiControlCentralized (banks, brokers)Decentralized (smart contracts)AccessRequires ID, credit check, approvalAnyone with a walletSpeedDays for settlementMinutes or secondsFeesHigh (intermediaries take cuts)Lower (automated systems)TransparencyLimitedFull on-chain visibilityRegulationHeavy (KYC, AML, capital rules)Limited or noneUser protectionDeposit insurance, legal recourseVery limitedInnovation speedSlow (regulation, legacy systems)Fast (open source, permissionless)Challenges of TradFi

While TradFi is stable and trusted, it faces several challenges:

Slow to change – Strict regulations and legacy systems make innovation difficultHigh costs – Intermediaries (banks, brokers) take fees, making transactions expensiveLimited accessibility – Not everyone can easily access traditional financial services, especially in underbanked regionsOperating hours – Markets close on weekends and holidaysGeographic restrictions – Cross-border payments are slow and costlyChallenges of DeFi

DeFi also has significant limitations:

Smart contract risk – Bugs or exploits can lead to loss of fundsRegulatory uncertainty – Future regulations could restrict or ban DeFi activitiesNo consumer protections – No FDIC insurance, no chargebacksVolatility – Crypto prices can swing dramaticallyUser responsibility – Losing private keys means losing funds permanentlyThe Future: Convergence, Not Replacement

TradFi isn't going away. It is stable, trusted, and deeply embedded in the global economy. But it is starting to evolve:

Central banks are exploring digital currencies (CBDCs)Fintech platforms are adding crypto servicesInstitutions are studying how to integrate blockchain

At the same time, DeFi is maturing but still faces regulatory and security challenges. The most likely outcome isn't one replacing the other – but a hybrid system where TradFi and DeFi work together.

How to Trade DeFi Tokens on WEEX

For traders looking to gain exposure to the DeFi sector, WEEX offers a wide range of DeFi token trading pairs.

Step‑by‑step to trade DeFi tokens on WEEX:

Sign up for a WEEX account (email or phone)Complete KYC verificationDeposit USDT into your WEEX walletGo to the spot market and search for DeFi tokens like UNI, AAVE, or LINKEnter the amount and click Buy

WEEX offers low fees, deep liquidity, and advanced trading tools including futures and grid trading bots.

Frequently Asked Questions (FAQ)Q1: What is the main difference between TradFi and DeFi?

TradFi is centralized, relying on banks and brokers. DeFi is decentralized, using blockchain and smart contracts for peer-to-peer transactions.

Q2: Is DeFi safer than TradFi?

No. TradFi offers deposit insurance, legal recourse, and regulatory oversight. DeFi offers transparency and control but has higher risks like smart contract exploits and no consumer protections.

Q3: Can TradFi and DeFi coexist?

Yes. The most likely future is a hybrid system where traditional institutions integrate blockchain technology and DeFi protocols adopt regulatory compliance measures.

Q4: How do I start with DeFi?

You can start by setting up a crypto wallet (e.g., MetaMask), purchasing crypto on an exchange like WEEX, and exploring DeFi applications like Uniswap or Aave.

Q5: How can I trade DeFi tokens on WEEX?

Sign up on WEEX, complete KYC, deposit USDT, and trade DeFi tokens like UNI, AAVE, or LINK on the spot market.

Conclusion 

Understanding TradFi vs DeFi is essential for anyone navigating the modern financial landscape. TradFi offers stability, regulation, and consumer protections. DeFi offers openness, innovation, and accessibility. The future of finance isn't about one replacing the other – it's about convergence. As central banks explore digital currencies and institutions adopt blockchain, a hybrid system is emerging.

Ready to explore DeFi trading? Sign up on WEEX today. Trade UNI/USDT, AAVE/USDT, LINK/USDT, and other DeFi tokens with low fees and deep liquidity.

If you want to buy WXT now, you can sign up for a WEEX account.

Welcome Bonus from WEEX — Claim Up to 30,000 USDT! Join Now!

Risk Disclaimer: This article is for informational purposes only and does not constitute financial advice. DeFi trading involves significant risk, including smart contract vulnerabilities, market volatility, regulatory uncertainty, and potential loss of funds. TradFi and DeFi have different risk profiles. Always conduct your own research (DYOR) before making any investment decisions. WEEX does not endorse any specific project or token. Trade responsibly.

How to Short Bitcoin on WEEX: A Step-by-Step Guide to Short-Selling BTC

Bitcoin has done well over time. No argument there. But it doesn't go up forever. Every bull run ends. Corrections happen. Bear markets hurt.

If you only know how to buy and hold, you miss half the game.

Shorting Bitcoin lets you make money when the price drops. It's not magic. It's just trading the other direction. This guide walks you through exactly how to go short on BTC, the risks you can't ignore, and the tools—like futures trading—that make it possible.

Long vs Short: What's the Difference?

If you're long on Bitcoin, you profit when the price goes up. Buy low, sell high. That's the basic move.

If you're short on Bitcoin, you profit when the price goes down. Sell high first, then buy back low later.

PositionProfit whenHow it worksLongPrice ↑Buy now, sell laterShortPrice ↓Sell borrowed BTC now, buy back later

Being short means you're betting against the market. When everyone else is panicking, you're green.

How Does Shorting Bitcoin Work?

The exchange handles the messy parts. But you should know what's happening under the hood.

Step-by-step mechanics:

You borrow Bitcoin from the exchangeThe exchange immediately sells that BTC at current market price (you get ~$60k)You wait. Price drops to $50kYou buy back 1 BTC for $50kYou return the 1 BTC to the exchangeYou keep the $10k difference (minus fees)

That's it. You sold high before you even owned the asset. Then bought it back cheaper later.

If the price goes up instead? You're in trouble. We'll get to that.

When Should You Go Short on Bitcoin?

Timing matters more for shorts than longs. A long position can wait out a dip. A short position bleeds if the price rallies.

Good times to consider shorting:

Clear bear market trends (like 2022's 65% drop)Overbought conditions showing reversal signalsDeath crosses (50-day MA falling below 200-day MA)RSI showing bearish divergence

Bad times to short:

Strong uptrend with no reversal signsBefore major positive catalysts (halvings, ETF news)When funding rates are extremely negative (too many shorts already)

Experienced short sellers use technical analysis for timing. No one guesses right every time.

Leverage and Futures Trading: The Amplifier

Here's where futures trading comes in.

When you go short using futures or perpetual swaps, you can add leverage. Leverage means you borrow extra funds from the exchange to increase position size.

Example with 10x leverage:

You have $1,000 in your accountYou open a short position worth $10,000A 10% move against you = 100% loss of your $1,000

Leverage is not free money. It's a risk multiplier. In crypto's volatile market, a sudden 5% pump can wipe out a highly leveraged short position in minutes.

Rule of thumb: If you're new to futures trading, start with 1x (no leverage). Learn how the position behaves. Then decide if you want more exposure.

How to Short Bitcoin on WEEX: Step-by-Step Guide

WEEX is a solid choice for shorting Bitcoin, especially if you're looking for deep liquidity and user-friendly futures tools. The platform supports up to 400x leverage on BTC/USDT perpetual swaps, though I'd strongly advise against cranking it that high unless you really know what you're doing.

Weex offers futures trading with up to 400x leverage on multiple markets.

Navigate to Weex futures trading pageSelect BTC/USDT PerpetualSet leverage using the leverage selectorChoose order type: Limit or MarketEnter position size or margin amountSet take-profit or stop-loss in the order panelClick Open Short to open the positionConfirm order details and submit

Advanced Tools for Short Sellers

Not for beginners. But worth knowing.

Perpetual Swaps Funding Rates

Perpetual swaps charge funding rates every 8 hours. If you're short and funding is positive, you pay. If funding is negative, you receive payment.

Stop-Loss Orders

Always use a stop-loss when shorting. Set it just above a recent high or resistance level. This caps your loss if the market reverses.

Take-Profit Orders

Set a target. Greed kills short positions. If BTC hits your target, take the win and move on.

Conclusion

Shorting Bitcoin gives you a way to profit from drops. In a market known for 30-50% corrections, that's valuable.

But the risks are real. Infinite loss potential isn't marketing hype. It's math.

Use stop-losses. Start with low or no leverage. Demo trade until you understand how shorts behave during volatile moves. And never short more than you can afford to lose.

For execution, choose a platform with deep liquidity and clear fee structures. Register, complete verification, enable security features, and start small.

Ready to trade? WEEX gives you up to 400x leverage, zero fees, instant execution, and the security you need. Sign up now and start trading!

FAQWhat does it mean to short Bitcoin?

Shorting Bitcoin means betting the price will fall. You borrow BTC, sell it at current price, then buy it back cheaper later to return it. The difference is your profit.

Is shorting Bitcoin riskier than buying?

Yes. When you buy spot Bitcoin, your maximum loss is what you paid. When you short, losses can theoretically be infinite if the price keeps rising.

What is leverage in futures trading?

Leverage lets you control a larger position with less capital. 10x leverage means a 1,000accountcontrols1,000accountcontrols10,000. But it amplifies losses as much as gains.

Can I short Bitcoin without leverage?

Yes. Use 1x leverage (no leverage) on perpetual swaps or margin trade by borrowing 1:1. Your losses are smaller but still uncapped in theory.

How to Go Long in Futures: WEEX Guide 2026

Going long is the first thing most traders learn.

Buy low. Sell high. That is the dream.

But in futures trading, going long works differently than spot. Leverage changes everything. Funding costs appear. Liquidation becomes real.

This guide shows exactly how to go long on WEEX futures, what to check before clicking buy, and how to avoid the mistakes that wipe out new traders.

What Does "Go Long" Mean in Futures Trading?

Going long means opening a futures position that profits when the asset price rises.

Simple example:

A trader goes long on BTC at 80,000.Pricerisesto80,000.Pricerisesto85,000. The trader profits $5,000 per BTC (minus fees and funding).

Same trader goes long at 80,000.Pricedropsto80,000.Pricedropsto75,000. The trader loses $5,000.

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PositionPrice Goes UpPrice Goes DownLong (buy)ProfitLossShort (sell)LossProfit

Futures trading allows leverage. A trader does not need to put up full value. But leverage amplifies both gains and losses.

Why Go Long Instead of Just Buying Spot?

Reason 1 – Leverage multiplies returns

Spot trading: 1,000buys1,000buys1,000 of BTC. Price rises 10%. Trader makes $100.

Futures with 10x leverage: 1,000margincontrols1,000margincontrols10,000 of BTC. Same 10% rise makes $1,000. That is 100% return on margin.

Same leverage works against the trader if price drops.

Reason 2 – No need to hold the asset

A spot buyer must hold actual Bitcoin. A futures long position only requires margin. No wallet setup. No custody concerns.

Reason 3 – Access to more markets

WEEX futures offer longs on BTC, ETH, SOL, and dozens of other pairs. Spot trading may have fewer options or lower liquidity.

How to Go Long on WEEX: Step-by-Step Guide

WEEX offers futures trading with up to 400x leverage on select markets. The following steps work for both web and mobile.

1. Navigate to Weex futures trading page

2. Select the trading pair (BTC, ETH, SOL, etc.)

3. Set leverage using the leverage selector

4. Choose order type: Limit or Market

5. Enter position size or margin amount

6. Set take-profit or stop-loss in the order panel

7. Click Open Long to open the position

8. Confirm order details and submit

What to Check Before Confirming a Long Position

Before clicking Buy / Long, a trader should review five things.

Leverage setting and liquidation price

Higher leverage means lower liquidation distance. At 100x leverage, a 1% move against the position wipes it out.

Stop-loss level

The stop-loss defines maximum acceptable loss. Without one, a trader relies on hope. Hope does not work in futures trading.

Current funding rate

If funding rate is positive, long positions pay shorts every 8 hours. Holding through multiple funding intervals adds cost.

Available margin and margin mode

Cross margin uses all available balance. Isolated margin limits risk to the specific position. Beginners should use isolated margin.

Position size relative to account size

A single position should not risk more than 1-2% of total account value. That is a common rule among professional traders.

Common Mistakes When Going Long on FuturesNo stop-loss

The most expensive mistake in futures trading. A trader who does not set a stop-loss will eventually lose everything.

Over-leveraging

400x leverage sounds exciting. It also means a 0.25% move against the position causes liquidation. Most traders should use 2x to 10x, not 400x.

Ignoring funding rates

Positive funding means long positions pay. Holding for days without checking funding costs can turn a winning trade into a loser.

No take-profit

Greed kills trades. A take-profit locks in gains. Without one, a trader watches price rise, then fall, then rise again, then lose everything.

Long vs Short: Which Strategy Fits?FactorGoing LongGoing ShortMarket directionBullishBearishNatural feelingComfortableUncomfortable for mostMax lossLimited to marginTheoretically unlimitedFunding impactPays if positivePays if negativeBest forUptrends, breakoutsDowntrends, overbought conditions

Most beginners start with long positions. That makes sense. Going long feels natural. But a trader who only knows longs misses half the market.

How WEEX Futures Compare to Other PlatformsFeatureWEEXTypical CompetitorsMaximum leverageUp to 400xOften 50x-100xFeesCompetitiveVaries widelyMarkets100+ futures pairsUsually fewerExecutionInstantVaries

The main difference for most traders is leverage range. WEEX offers higher maximum leverage. That does not mean a trader should use it. But the option exists.

Conclusion

Going long on futures is simple in concept: profit when price rises. But the details matter. Leverage kills unprepared traders. Funding costs add up. Liquidation happens fast.

A trader who uses stop-losses, starts with low leverage, and checks funding rates has a real advantage over most retail traders.

Ready to trade? WEEX gives you up to 400x leverage, zero fees, instant execution, and the security you need. Sign up now and start trading!

FAQWhat does going long mean in crypto futures?

Going long means opening a futures position that profits when the price of an asset rises.

How does a trader go long on WEEX?

Select the market, set leverage, choose order type, enter position size, set TP/SL, and click Buy/Long.

What leverage can be used on WEEX futures?

WEEX offers up to 400x leverage on select markets. Lower leverage is recommended for beginners.

How do I manage risk when trading long or short?

Use stop-loss orders, size your trades conservatively, and follow a defined risk-to-reward ratio. Monitoring volatility and avoiding overtrading are also key to staying in control.

How does a trader avoid liquidation when going long?

Set a stop-loss below entry. Avoid over-leveraging. Use isolated margin mode.

How to Go Short in Futures Trading: Weex Guide 2026

Most crypto traders only know one direction: up. They buy. They hope. They watch red candles and panic. That is spot trading. Limited. One-way.

Futures trading changes that. A trader can go short. Profit when prices drop. Hedge existing positions. Trade both bull and bear markets.

This guide shows exactly how to go short on WEEX, why it works, and the risks every trader should understand before opening a short position.

What Does "Go Short" Mean in Futures Trading?

Going short means opening a futures position that profits when the asset price falls.

A simple example:

A trader shorts BTC at 80,000.Pricedropsto80,000.Pricedropsto75,000. The trader profits $5,000 per BTC (minus fees and funding).

Same trader shorts BTC at 80,000.Pricerisesto80,000.Pricerisesto85,000. The trader loses $5,000.

PositionPrice Goes UpPrice Goes DownLong (buy)ProfitLossShort (sell)LossProfit

Futures trading allows profit from both directions. Spot trading only profits from rising prices.

Why does this matter? Because crypto markets do not only go up. Bear markets happen. Corrections happen. Shorting lets a trader act on those views instead of sitting in cash.

Why Go Short?Directional conviction

A trader believes BTC is overpriced. Maybe a crash is coming. Maybe just a correction.

A short futures position lets that trader act on the view. No need to own the asset first. Open a sell position. If price drops, the position generates profit.

With up to 10x leverage on Weex, a 5% drop produces a 50% return on margin. Same leverage works against the trader if price rises.

Hedging existing holdings

A trader holds crypto and does not want to sell. Reasons include tax implications or long-term belief. But the trader is nervous about a short-term drop.

Opening a short position solves this. If price falls, the short gains offset spot losses. The portfolio stays flat while the market drops.

Professional traders use this constantly.

How to Go Short on Weex: Step by Step

Weex offers futures trading with up to 400x leverage on multiple markets.

1. Navigate to Weex futures trading page

2. Select the trading pair (BTC, ETH, SOL, etc.)

3. Set leverage using the leverage selector

4. Choose order type: Limit or Market

5. Enter position size or margin amount

6. Set take-profit or stop-loss in the order panel

7. Click Open Short to open the position

8. Confirm order details and submit

What Futures Markets Can Be Shorted on Weex?

Weex supports short positions across major crypto futures markets including:

BTC, ETH, SOL, ADA, DOGE, LTC, XRP, and other supported pairs.

Traders should check the platform for the current full list. New markets are added regularly.

Short vs Long: Risk Profiles ComparasionFactorLong PositionShort PositionMaximum lossLimited to marginTheoretically unlimitedFunding impactPays if rate negativePays if rate negativeEmotional difficultyLow (feels natural)Higher (feels uncomfortable)Squeeze riskNoYes (short squeeze)

Most new traders find shorting more difficult psychologically. That is normal. Starting small, using lower leverage, and always setting stop-losses helps build experience.

Pro Tips for Shorting Crypto FuturesTip 1: Start with 2x to 3x leverage, not 10x

Leverage amplifies both gains and losses. A trader should master the direction first, then add leverage.

Tip 2: Check funding rates before holding overnight

Positive funding pays the short trader. Negative funding costs the short trader. Ignoring funding rates is a common mistake.

Tip 3: Set stop-loss 5% to 10% above entry

A stop-loss set too tight gets triggered by normal market volatility. Giving the trade room to breathe improves success rates.

Tip 4: Short into resistance, not after a crash

The best short entries are near obvious resistance levels. The worst entry is after price has already dropped 20%.

Read More: How to Set a Stop-Loss Order on WEEX: Full Guide 2026

Common Mistakes When Going ShortNo stop-loss

The most common and most expensive mistake. A trader who does not set a stop-loss deserves the loss.

Over-leveraging

10x leverage on a short position means a 10% price rise liquidates the position. That move happens often in crypto.

Ignoring funding rates

Holding a short position for days without checking funding rates can lead to unexpected costs.

Conclusion

Futures trading opens opportunities that spot trading cannot offer. Going short lets a trader profit from down moves, hedge an existing portfolio, and trade full market cycles.

But shorting carries real risks. Unlimited loss potential. Funding costs. Fast liquidation during short squeezes.

A trader who uses stop-losses on every trade, checks funding rates before holding overnight, and starts with low leverage has a much better chance of success.

Weex provides a straightforward platform to go short on BTC, ETH, and other major futures markets. The tools are there. Risk management is up to the trader.

Ready to trade? WEEX gives you up to 400x leverage, zero fees, instant execution, and the security you need. Sign up now and start trading!

FAQWhat does go short mean in crypto futures?

Going short means opening a futures position that profits when the price of an asset falls.

How does a trader go short on Weex?

Select the market, set leverage, choose order type, enter position size, set TP/SL, and click Sell/Short.

Can a trader short Bitcoin?

Yes. BTC futures are available on Weex and most major exchanges.

What leverage can be used for shorting on Weex?

Weex offers up to 10x leverage on crypto futures. Lower leverage is recommended for beginners.

Is shorting riskier than going long?

Yes. Losses on a short position are theoretically unlimited. A long position can only go to zero.

What Is Polymarket? And How Polymarket Works

Key TakeawaysPolymarket is a decentralized prediction market for trading on real-world eventsOperates on Polygon blockchain using USDC stablecoinShifted to a fee-based revenue model in 2026Received CFTC approval in December 2025 to re-enter the US marketTrade prediction market-related tokens on WEEXIntroduction

Polymarket is a decentralized prediction market platform where users can bet on real-world event outcomes using cryptocurrencies. Built on the Polygon network, Polymarket leverages blockchain technology and smart contracts to provide transparent, secure, and low-cost speculation on events ranging from political elections to sports outcomes and economic indicators. As of April 2026, Polymarket continues to be the largest decentralized prediction market by trading volume. This article covers how Polymarket works, its fee structure, risks, and how you can gain exposure to the prediction market sector through related tokens on WEEX.

What Is Polymarket? 

Polymarket is a decentralized prediction market platform built on the Polygon blockchain, where users can trade on the outcomes of real-world events such as elections, economic data releases, or cryptocurrency prices. Unlike traditional betting, users are not wagering against a bookmaker; instead, they trade with one another by buying and selling “Yes/No” shares based on the probability of an event occurring, with market prices reflecting collective expectations. The platform gained significant traction during the 2024 U.S. presidential election and has continued to see steady user growth since then.

Polymarket operates through smart contracts that automatically execute trades and settlements on-chain, ensuring transparency and eliminating the need for intermediaries. Leveraging Polygon’s scalability, it offers low fees and high efficiency. Users typically connect a crypto wallet and use stablecoins such as USDC to participate, turning their views on future events into tradable probability-based assets.

How Does Polymarket Decentralized Prediction Market Work? 

To understand Polymarket, it comes down to three main pieces: how trading works, how the system is built, and how markets are settled.

1. Trading, Order Book, and Prices
Polymarket uses a central limit order book, similar to a stock exchange. You can either place an order at a price you’re willing to trade at and wait, or take someone else’s existing order.

Prices usually range from $0.01 to $1.00, reflecting the market’s view of probability. For example, if you buy a “Yes” share at $0.65 and the outcome is “Yes,” it pays out $1.00, so you make $0.35 per share. If the outcome is “No,” the share goes to $0.

2. Blockchain Structure
Polymarket runs on Polygon, a scaling network connected to Ethereum, and uses USDC for trading. This setup allows:

Transparent transactions that anyone can verify on-chainFull control of funds through personal crypto walletsPermanent records that can’t be changed

At the same time, users are responsible for their own security. Losing access to a wallet or getting hacked usually means the funds are gone for good.

3. Time-Based Markets
Markets have different timeframes, from as short as 5 minutes to as long as a year. Short-term markets (like 5–15 minutes) tend to move quickly and carry higher risk.

4. Market Resolution
Polymarket uses UMA’s optimistic oracle to settle markets. Someone proposes the result and puts up a bond (around 750 USDC). There’s then a short window (about 2 hours) where others can challenge it. If no one disputes, the result is accepted and winning shares pay $1.00. If there is a dispute, UMA token holders vote to decide the final outcome.

Polymarket Fees Breakdown

Polymarket charges minimal fees, primarily to cover transaction costs and incentivize liquidity providers:

Fee TypeAmountNotesTrading fees$0No fees for buying/selling sharesDeposit fee$3 or 0.3% (whichever is higher)Plus network gas feesWithdrawal feeNetwork gas fees onlyVaries by network congestionLiquidity provider rewardsPaid from transaction feesIncentivizes liquidity

Polymarket does not charge additional market fees, making it more cost-effective than many traditional and decentralized competitors.

How Is This Different From Normal Betting?

Polymarket is closer to a financial market than a typical gambling site. In normal sports betting, a bookmaker sets the odds with a built-in house advantage. On Polymarket, the price of each outcome is mostly determined by what other users are willing to pay.

Prediction markets aggregate information from a large number of people. When many users risk money on an outcome, the market price serves as a rough estimate of probability. If "Yes" shares cost $0.70, the market is roughly saying there is a 70% chance the event will happen.

Polymarket Funding, Valuation, and Growth

Polymarket has attracted major investment:

DateEventDetailsOctober 2025$2B investment from ICE$9B valuationJanuary 2026Secondary valuation~$11.6BMarch 2026Early funding talks~$20B valuation

Sports markets have become especially important, making up about 39% of trading activity. The 2026 Super Bowl produced approximately $795 million in volume across related markets.

How to Trade Prediction Market-Related Tokens on WEEX

While Polymarket itself does not have a native token, traders can gain exposure to the prediction market and blockchain infrastructure sectors on WEEX.

Step‑by‑step to trade on WEEX:

Sign up for a WEEX account (email or phone)Complete KYC verificationDeposit USDT into your WEEX walletGo to the spot market and search for tokens like POL/USDT (Polygon) or other infrastructure projectsEnter the amount and click Buy

WEEX offers low fees, deep liquidity, and advanced trading tools including futures and grid trading bots.

Conclusion 

Polymarket has established itself as the leading decentralized prediction market, offering transparent, peer-to-peer trading on real-world events. With its 2026 fee model shift, December 2025 CFTC approval for US re-entry, and significant valuation growth, Polymarket continues to evolve. While risks remain – including smart contract vulnerabilities and wallet security – the platform has built a strong track record.

Ready to gain exposure to the prediction market sector? Sign up on WEEX today. Trade POL/USDT and other blockchain infrastructure tokens with low fees and deep liquidity.

Frequently Asked Questions (FAQ)

Q1: What is Polymarket?
Polymarket is a decentralized prediction market platform where users trade shares on real-world event outcomes using USDC on the Polygon blockchain.

Q2: Did Polymarket get CFTC approval?
Yes. In December 2025, Polymarket received CFTC approval to re-enter the US market through a regulated Designated Contract Market structure.

Q3: How does Polymarket make money?
In 2026, Polymarket shifted to a fee-based revenue model. Users also pay bid-ask spreads and blockchain gas fees.

Q4: Is Polymarket safe to use?
Polymarket has a track record of honoring outcomes and payouts. However, risks include smart contract bugs, wallet security, and regulatory changes.

Q5: How can I invest in prediction markets on WEEX?
Trade POL/USDT (Polygon) and other blockchain infrastructure tokens on WEEX to gain exposure to the sector.

Risk Disclaimer: This article is for informational purposes only and does not constitute financial advice. Prediction markets involve significant risk, including market volatility, potential loss of invested funds, regulatory changes, and smart contract vulnerabilities. Past performance does not guarantee future results. Always conduct your own research (DYOR) before making any investment decisions. WEEX does not endorse any specific project or platform. Trade responsibly.

 

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