Predictions
What are Predictions?
Predictions, also known as binary options, are a type of financial instrument that allows bettors to speculate on the price movement of an asset. In this game, gamblers need to predict the future price movement of the chosen asset within a specified time frame. They can choose to go:
Long, if they believe the price will rise above the current level by the expiry time.
Short, if they expect the price to fall below the current level by the expiry time.
If the player's prediction is correct when the expiry time is reached, they receive a fixed payout ranging from 60% to 82% of the investment amount. However, if the prediction is incorrect, the player loses the entire invested amount. Therefore, there are two possible outcomes: a predetermined fixed payout if the trader's prediction is correct, or a loss if the prediction is incorrect.
To understand Predictions better, there are three key elements to keep in mind:
Predictions have a fixed expiration time and a fixed payout.
This means that Predictions players know exactly how much they stand to lose, how much they stand to gain, and the expiration date of their bet.
Once a Predictions player takes a position, they cannot exit the bet.
Traders must wait until expiration to find out whether they have won or lost, and they must maintain their position until the end.
Regardless of the percentage increase or decrease of an asset, the gain and loss remain the same.
This means that if a player has taken a long bet on an asset, they will earn the same amount whether the asset has increased by 0.1% or 500%. Similarly, if the asset has decreased between the bet's purchase price and expiration date, the player will lose their entire investment, regardless of the percentage decrease of the asset. The same concept applies to short bets on an asset.
Examples
Let's take two examples to clarify the process of Predictions.
Suppose Bob believes that BTC will increase in value. He takes a long position that bets on the increase of BTC for an expiration in 30 minutes. His expected gain is 70%. He invests $100 when the BTC price is $30,000.
Two scenarios may occur:
If BTC closes above $30,000 at the bet's expiration (in 30 minutes), Bob will win $70, receiving $170 in total (his initial investment of $100 plus the $70 gain).
If BTC closes below $30,000 at the bet’s expiration, Bob will lose $100.
For a prediction betting on a decrease in BTC’s price, the process is the same but reversed.
Let's say Bob invests another $100 at $30,000, but this time bets on the decrease of BTC, with an expiration of 15 minutes.
The two possible outcomes are:
If BTC closes above $30,000 at the expiration of the bet (in 15 minutes), Bob will lose his $100 investment.
If BTC closes below $30,000 at the expiration of the bet, Bob will win $70, receiving $170 in total (his initial investment and the $70 gain).
So, Bob will either receive a 70% gain on his position or lose his entire investment, regardless of the percentage increase or decrease of the underlying asset, even if the movement is only 0.001%.
0xBets partnered with PRDT Finance: Predictions
Thanks to the partnership between 0xBets and PRDT, you can now play Predictions on Polygon with the following assets:
BTC
ETH
Matic
Doge
XRP
TRX
Expiration periods range from 2 to 30 minutes, with fixed payouts ranging from 60% to 82%. Please note that there is a 5% opening fee for each position.
In the future, new assets and asset classes (such as commodities and stocks) are expected to be added.
How to play:
Connect your wallet to: https://play.0xbets.io/
To start betting on the platform and enjoy instant execution of your trades without the need to confirm each transaction, you need to deposit funds.
To do so, simply click on the 'deposit' button.
Then choose:
The asset you want to use for your predictions
The amount
To withdraw, simply follow the same steps on the 'Withdraw' tab.
To open a position, follow these steps:
Select the asset you want to bet on from the following: BTC, ETH, Matic, TRX, XRP, or DOGE.
Choose the duration of your bet.
Decide on the amount you want to bet.
Choose whether to bet on the rise or fall of the asset price.
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