h5 logo
Download

Japan Crypto Tax 2025: A Complete Guide

By: WEEX|2025-10-13 00:52:47
0
Share
copy

Navigating cryptocurrency taxes in Japan can feel overwhelming, even for seasoned investors and traders. With regulations evolving rapidly and stringent enforcement mechanisms in place, it’s crucial for anyone involved in crypto to understand their tax obligations in 2025. This thorough guide demystifies Japan’s cryptocurrency tax landscape—including tax rates, taxable events, reporting methods, common pitfalls, guidance for DeFi users, and how to simplify your filings using robust tools like the WEEX Tax Calculator. Whether you are an occasional trader, DeFi enthusiast, or earn regular income in cryptocurrency, you’ll find actionable insights and practical examples to help you stay compliant and optimize your tax outcomes.

Do You Pay Cryptocurrency Taxes in Japan?

If you’ve bought, sold, traded, or earned any form of cryptocurrency in Japan, you are potentially subject to taxation. Japan’s National Tax Agency (NTA) classifies cryptocurrencies as property, and any profits or income derived from their use must be reported as “miscellaneous income.”

Who Must File Crypto Taxes?

Japan’s crypto tax regime casts a wide net, affecting residents, non-residents, and non-permanent residents:

  • Residents and citizens: Required to report worldwide income, including all crypto gains.
  • Non-permanent residents: Generally taxed at 20.42% on crypto income sourced within Japan.
  • Non-residents: Taxed on income earned from Japanese sources; global income may not be subject unless remitted to Japan.

Income Threshold: If your combined crypto and employment income is less than 200,000 JPY in the tax year, you do not need to file a return for crypto, unless you are also applying for certain other deductions like medical expenses or the hometown tax program (furusato nozei). However, if you cross that threshold, all taxable crypto events must be reported.

What Types of Crypto Income Must Be Reported?

Japan’s NTA requires you to report a comprehensive list of crypto activities, including but not limited to:

  • Selling crypto for fiat currency (e.g., JPY or USD)
  • Trading one cryptocurrency for another (Bitcoin to Ethereum, for example)
  • Using crypto to purchase goods or services
  • Receiving crypto as mining, staking, DeFi, or airdrop rewards
  • Salary or compensation paid in crypto
  • Bonuses, referral incentives, or affiliate rewards in crypto
  • Gifting cryptocurrency

These transactions can occur through personal wallets or via exchanges—both domestic and international.

Real-World Example:

If you purchased 0.5 BTC for 2,000,000 JPY and, later in the year, sold it for 2,400,000 JPY, you’d have a taxable gain of 400,000 JPY, which must be reported if your total income (from all sources) exceeds 200,000 JPY.

What Is Not Taxable?

There are also crypto transactions that remain tax-free in Japan:

  • Buying crypto with fiat currency (e.g., purchasing BTC with JPY)
  • Transferring your crypto between wallets you own
  • Simply holding or “hodling” crypto, regardless of how much its value changes
  • Donating crypto to qualified charities

Understanding which activities are taxable and which are not is vital to filing correctly and avoiding overpayment.

How Much Tax Do You Pay on Crypto in Japan?

The Japanese crypto tax regime is progressive—meaning your effective rate increases as your total taxable income plateaus through higher brackets. A municipal inhabitant tax of 10% is also added to your national tax liability, resulting in an effective upper limit of 55%.

2025 Progressive Income Tax Brackets

Below is a detailed breakdown of Japan’s income tax rates (including how these apply to cryptocurrency income):

Taxable Income (JPY)

National Income Tax Rate

Municipal Tax (Inhabitant)

Effective Total Rate

0 – 1,950,0005%10%15%
1,950,000 – 3,300,00010%10%20%
3,300,000 – 6,950,00020%10%30%
6,950,000 – 9,000,00023%10%33%
9,000,000 – 18,000,00033%10%43%
18,000,000 – 40,000,00040%10%50%
40,000,000+45%10%55%

Key Points:

  • Your total income determines your tax band, with cryptocurrency gains added to salary or other income.
  • If you are a non-permanent resident, crypto income from Japanese sources is taxed at a flat 20.42%, making the calculation simpler but less flexible for loss offsetting.
  • For most, the effective tax range for crypto is between 15% to 55% depending on total annual income.

Example of Tax Calculation

Suppose your annual employment income is 5,000,000 JPY, and your net crypto gain is an additional 3,000,000 JPY from a combination of trading and staking rewards. Your total income would be 8,000,000 JPY.

  • The first 6,950,000 JPY would be taxed at progressively higher bands.
  • The income exceeding 6,950,000 JPY would be taxed at the 23% rate until you reach the next bracket.
  • All income is then subject to municipal tax at 10%.

Tax-Free Threshold and Minor Exemptions

Scenario

Tax Liability

Requirements

Total income (all sources) < 200,000 JPYNo tax return neededUnless filing for deductible expenses (e.g., medical)
Salary only (income tax withheld, no crypto gains)No additional filingApplies if no non-salary income exceeds threshold
Crypto income < 200,000 JPY + other incomeNo filing requiredExcept when aggregating incomes crosses limit

Note: Even if you don’t legally need to file, you may wish to do so to claim certain deductions or clarify reporting.

Can the Nta Track Crypto?

Cryptocurrency’s renowned pseudonymity does not mean anonymity—particularly in Japan’s tightly regulated environment.

Regulatory Oversight and Exchange Integration

Japanese exchanges, referred to as Crypto-Asset Exchange Service Providers (CAESPs), are mandated to register with the Financial Services Agency (FSA). These exchanges adhere to stringent customer identification (KYC) requirements, monitor all transactions, and share data regularly with the NTA.

  • Registered exchanges track trading and withdrawal activities, making off-platform concealment risky for users.
  • Japan is a founding member of the Financial Action Task Force (FATF) and has robust anti-money laundering protocols.
  • In 2021, authorities secured the first criminal conviction for crypto tax evasion, leading to jail time and a fine exceeding 22 million JPY—demonstrating the seriousness of enforcement.

Blockchain Transparency

While personal blockchain wallet addresses are not inherently linked to identities, cross-referencing exchange records, public blockchain data, and banking information enables authorities to uncover unreported gains.

Tip: Attempting to avoid taxes by moving assets between international exchanges or self-custody wallets carries significant risk, both from an audit perspective and in terms of future compliance as data-sharing expands.

-- Price

--

How Is Crypto Taxed in Japan?

Japan treats all crypto gains and income as “miscellaneous income,” subjecting them to progressive income tax rates rather than the flat rates applied to stocks and equities. Understanding what constitutes a taxable event—and how to calculate your gain or loss—is fundamental.

Taxable Crypto Events and Their Treatments

Crypto Activity

Tax Category Type

Taxable Event?

Reporting Basis

Example

Selling crypto for fiatDisposalYesSale proceeds minus cost basis on that dateSell BTC for JPY, recognize gain/loss
Trading crypto for cryptoDisposalYesMarket value of new asset on trade dateSwap ETH for ADA, recognize gain/loss
Using crypto for purchasesDisposalYesFMV of goods/services minus crypto’s costBuy laptop with BTC, report gain/loss
Gifting cryptoDisposalYesMarket value at date of gift minus costSend crypto to friend, report as disposal
Mining, staking, airdrop rewardIncomeYesFMV in JPY at date of receiptMine/receive tokens, report as income
Salary, referral bonusesIncomeYesFMV in JPY at date of receiptPaid in crypto, report as miscellaneous
Buying crypto with fiatAcquisitionNoN/ABuy BTC with JPY, no tax yet
Holding or transferring between walletsN/ANoN/AMove BTC between personal wallets
Donating crypto to charityDonationNoSpecial conditionsGive to registered charity

Key Calculation Rule:
For disposals, gain or loss is sale price/fair market value at time of event – cost basis (purchase price plus eligible fees).

Example: Trading Crypto for Crypto

If you exchange 1 ETH (bought for 300,000 JPY) for 40,000 ADA, and the market value of the ADA is 350,000 JPY at the time of trade:

  • Gain recognized = 350,000 JPY (ADA value) – 300,000 JPY (ETH cost basis) = 50,000 JPY taxable gain

Example: Staking Reward

Receiving 0.1 BTC as a staking reward when BTC is valued at 5,000,000 JPY per BTC:

  • Income recognized = 0.1 x 5,000,000 JPY = 500,000 JPY (miscellaneous income for the year)

If you later sell the staking reward, any additional price appreciation is once again a taxable event.

Accounting Methods Allowed

Taxpayers can choose between the total average method or the moving average method (Adjusted Cost Basis, ACB) for calculating cost basis. Both methods allow you to standardize cost calculations across multiple purchases; the moving average method is especially precise for frequent traders and is supported by many calculation tools.

Accounting Method

Description

Common Use Case

Total AverageTotal acquisition costs divided by total quantity heldSimple portfolios
Moving Average (ACB)Average cost adjusts with each new purchase/acquisitionFrequent active traders

Japan Income Tax Rate

Japan’s income tax rates apply progressively to all taxable personal income, including crypto gains, salary, rental income, and other sources. The addition of the 10% municipal inhabitant tax can have a significant impact, especially for large gains.

Income Tax Rates Table (2025)

Taxable Income Bracket (JPY)

National Income Tax Rate

Inhabitant Tax

Total Maximum Rate

0 – 1,950,0005%10%15%
1,950,000 – 3,300,00010%10%20%
3,300,000 – 6,950,00020%10%30%
6,950,000 – 9,000,00023%10%33%
9,000,000 – 18,000,00033%10%43%
18,000,000 – 40,000,00040%10%50%
40,000,000+45%10%55%

Non-permanent residents are taxed at a flat 20.42% on applicable income sources.

Crypto Losses in Japan

One of the unique and sometimes frustrating features of Japan’s crypto taxation is how it views losses:

  • Crypto losses are not deductible against income from employment or capital gains from stocks/equities.
  • Losses can only offset other miscellaneous income for the same tax year.
  • No carryforward: Losses cannot be carried to future years for tax purposes.

Scenario

Can Offset Crypto Losses?

Can Carry Forward?

Employment income (salary, wages)NoNo
Capital gains from stocks/equitiesNoNo
Other miscellaneous income (same year)YesNo
Miscellaneous income (future years)NoNo

Analogy:

Think of crypto losses like losing your umbrella on a rainy day in Japan—you can’t use it for the next day’s rain, and it can’t shelter you from the downpour of taxes on your next year’s gains.

Upcoming Tax Reform (Proposed for 2026)

Japan is discussing a potential overhaul of its crypto tax regime:

  • A flat 20% tax rate (like equities)
  • Allowing crypto losses to be carried forward and offset
  • Enhanced investor protections under the Financial Instruments and Exchange Act

Until any reform is enacted, the current rules (as outlined above) remain strictly in force for 2025.

Defi Tax

With the explosion of decentralized finance (DeFi) protocols, more Japanese investors are experimenting with staking, liquidity pools, yield farming, decentralized exchanges, and other smart contract-based services. The NTA has signaled that these activities fall under the same “miscellaneous income” tax treatment as conventional crypto gains.

Common DeFi Tax Scenarios

DeFi Activity

Taxable Event?

Tax Timing

Tax Basis

Earning yield by stakingYesRecognized at date of receiptFMV of tokens in JPY on receipt
Liquidity mining/farming rewardsYesRecognized at date of receiptFMV on receipt
Swapping tokens via DEXYesAt time of each swapValue of tokens received minus cost basis
Providing/removing liquidityLikely yesWhen LP tokens are swapped/redeemedFMV of withdrawn assets – original basis
Airdrops/Gifts from DeFiYesOn receiptFMV at time of receipt

Note:
If you receive tokens from a protocol (e.g., Aave or Uniswap rewards), you must calculate the income as soon as the tokens become accessible in your wallet, even if you don’t immediately swap or sell them.

Example: DeFi Staking Income

Earned 1,000 USDT from a liquidity pool on a DeFi protocol. If USDT is worth 150 JPY per token, your reportable income is:

1,000 x 150 JPY = 150,000 JPY of miscellaneous income.

If you later sell the USDT for more or less, any additional gain or loss must be reported during that subsequent disposal event.

Using Tools: How to Report Your Japan Crypto Taxes

Completing an accurate Japanese crypto tax return requires meticulous transaction tracking and documentation—particularly if you use multiple wallets and exchanges. Here’s a step-by-step breakdown:

  • Gather Records: Collect statements and transaction histories from every exchange and personal wallet.
  • Calculate Gains and Income: Use permitted accounting methods (Moving Average or Total Average).
  • Determine Taxable Events: Identify all crypto earning and disposal events for the year.
  • Access Reports: Many automated calculators (including those by WEEX) allow you to import CSV files or use APIs to sync with major exchanges, categorize transactions, and generate detailed tax summaries.
  • File with the NTA: Filing is typically done via the National Tax Agency’s online portal or by submitting paper forms (Form A for most crypto investors). File between February 16 and March 15 for the prior year. Make sure to select “crypto assets (暗号資産)” as the income category.

Late or inaccurate reporting can lead to penalties, fines, or even criminal prosecution, as demonstrated by recent enforcement actions.

Filing Deadlines and Payment Schedule

  • Tax year: January 1 to December 31
  • Filing window: February 16 – March 15 (in 2026, for 2025 income)
  • Tax payment: Typically due by the end of March

Missing these deadlines can trigger additional scrutiny and financial penalties.

The Weex Difference: Security and Innovation for Japanese Crypto Investors

As crypto trading platforms continue to evolve, Japanese users are increasingly prioritizing exchanges that offer top-tier reliability, compliance, and innovation. WEEX, a leading global crypto exchange, stands out for its robust security infrastructure, seamless user experience, and a strong track record of compliance with local regulations.

For investors and traders committed to accurate tax reporting, WEEX supports detailed transaction exports and is fully compatible with automated tax calculators—helping simplify the complex process of compiling tax data across multiple assets, wallets, and protocols. Whether you’re an active day trader or a long-term holder, WEEX’s suite of tools and transparent reporting make tax season markedly less stressful.

Weex Tax Calculator: Simplifying Your Crypto Tax Filing

Calculating crypto taxes manually can be a daunting challenge, especially for users with high trading volumes or multiple DeFi positions. The WEEX Tax Calculator is designed to streamline this process. By importing your transaction history directly from WEEX, you can generate an accurate, itemized report customized for Japanese tax requirements. The calculator accommodates allowed cost-basis accounting methods and recognizes various taxable events—including DeFi and staking yields, trading gains, and unusual receipts.

Disclaimer: The WEEX Tax Calculator is a tool for informational and estimation purposes only. It does not constitute tax, legal, or accounting advice. Please consult a licensed tax professional for advice specific to your circumstances.

To explore the WEEX Tax Calculator for Bitcoin and other supported assets, visit [https://www.weex.com/tokens/bitcoin/tax-calculator](https://www.weex.com/tokens/bitcoin/tax-calculator).

 

 

Frequently Asked Questions

What cryptocurrencies are subject to tax in Japan?

All cryptocurrencies and digital tokens—including Bitcoin, Ethereum, stablecoins (like USDT and USDC), altcoins, and non-fungible tokens (NFTs)—are subject to Japan’s tax rules if you dispose of or earn them during the year. This applies regardless of whether the token is held on a domestic or overseas exchange. The moment you sell, trade, or use these assets, any resulting gains or income become taxable by the NTA.

How do I calculate my crypto tax liability?

Your crypto tax liability in Japan is determined using the following steps:

  • Identify all taxable events (sales, trades, income, rewards).
  • Calculate the gain or income for each event:

– For disposals: subtract the cost basis (purchase/acquisition price plus eligible fees) from the fair market value at the time of the transaction.
– For earnings: use the fair market value in JPY when you receive the crypto (e.g., mining, staking, airdrops).

  • Aggregate all gains and income and add the amount to your total annual income.
  • Apply the relevant progressive tax rates and municipal tax.

It’s critical to maintain precise records and use allowed accounting methods (total average or moving average).

What records should I keep for crypto taxes?

The NTA recommends keeping comprehensive documentation for at least seven years, including:

  • Transaction histories from all exchanges and wallets (dates, amounts, values in JPY)
  • Receipts for purchases and sales
  • Records of income from mining, staking, airdrops, or bonuses
  • Documentation for transfers and gifts
  • Cost basis calculations and fee records

Maintaining organized and accessible records is essential for defending your position in case of an audit.

When are crypto taxes due in Japan?

Crypto taxes in Japan are filed annually for the prior year. For the 2025 tax year:

  • The tax year runs from January 1, 2025, to December 31, 2025.
  • The filing period is from February 16, 2026, to March 15, 2026.
  • Tax payments should be completed by the designated deadline, typically at the end of March.

Late filing or payments may result in additional charges, audits, and possible penalties.

What happens if I don’t report crypto taxes?

Failure to accurately report your crypto tax obligations can result in:

  • Penalties and late filing fees
  • Interest on unpaid taxes
  • Criminal prosecution in severe cases (including recent jail sentences and large fines)
  • Increased risk of future audits

With Japanese exchanges now required to report user data to the National Tax Agency (NTA), tax evasion is increasingly difficult. The NTA actively monitors wallet activity and international exchange data under global information-sharing agreements.

Are there any ways to legally reduce crypto taxes in Japan?

Yes. Some strategies include:

  • Holding crypto for the long term rather than frequent trading
  • Offsetting profits with losses in the same year
  • Using the moving average accounting method for more stable cost tracking
  • Structuring investments through corporations (subject to corporate tax rules)

Consulting a qualified tax professional familiar with Japan’s crypto tax system can help ensure compliance while minimizing your total tax liability.

 

You may also like

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.

Click to Trade AAPLON/USDT

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.

Click to Trade MSFTON/USDT

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%.

Click to Trade AMZNON/USDT

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%).

Click to trade GOOGLON/USDT

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%.

Trade METAON/USDT

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.

Click to Trade TSLAON/USDT

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.

td {white-space:nowrap;border:0.5pt solid #dee0e3;font-size:10pt;font-style:normal;font-weight:normal;vertical-align:middle;word-break:normal;word-wrap:normal;}

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.

 

Vote the team you support & Win bonuses, airdrops, VIP tickets, etc.
Click and Share $500,000

Contents

Popular coins

Community
iconiconiconiconiconiconicon
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com