This Company has Created an Entirely New Way to Invest

Its practically unheard of

Source: Kalshi

Potentially one of the biggest investment disruptions - ever

A few days ago, I stumbled upon a company called Kalshi. And it wasn’t the new crypto company on the block, nor was it a fancy new stock broker, attempting to capture the interest of millennials. In fact, it was something that I believe has the potential to transform the way people invest. The article below is a summary of my research on Kalshi, and as to whether I think it is worth it to use - or not. Please keep in mind, however, that this is not financial advice in any way. You should not take on any investment in which you can’t afford to lose all of it.

Source: Kalshi

Using your knowledge to make good investments

For pretty much as long as investing has been a thing, your investment value was decided on the outcome of events. But what if you could trade the events that decided the outcome of your investments? Yeah, that is exactly what Kalshi is doing, but one of the most amazing things about this is that it is actually not gambling, which quite frankly, builds the main thesis for why to invest, here it is.

Source: Kalshi

Here’s why using Kalshi’s services isn’t gambling

Kalshi uses contracts to allow you to bet on outcomes. But here is the catch (its a good one) they’re tracked by the Commodity Futures Trading Commission. This means that you can’t be manipulated, you’re protected from fraud, and it is nearly impossible for you to be scammed within the futures markets. This is something that you’ll never see with any other futures trading markets.

How does it work? And is it worth it?

Kalshi’s contracts allow you to invest in two different ways. If you think the outcome will be yes to a certain event, then you can invest in that belief, and vice versa. But here are the steps that the contract goes through before you receive your payment.

1. Choose a contract - something like will there be a moon landing by 2025, or will there be a new COVID-19 wave. And don’t worry - there’s almost too many events to choose from.

2. Make your prediction - and invest.

3. If you are correct, then your contract will go to $1. So if you invest in a contract at 50 cents, you’ll see an 100% gain. However, if you’re on the wrong side, your contract will go to $0.

Some contracts are based on certain targets or percentages, however, the majority are yes or no ones. See this video below to learn more.

The big moment - is it worth it?

After researching Kalshi, yes, I believe it is a solid tool. However, I don’t want to sound like a broken record, but whether or not you choose to use Kalshi should not go without considering your own investing principles. If you know you aren’t interested in taking risks, and should not be very exposed to volatility, then Kalshi isn’t for you. It’s the opposite situation though, if you want to or should take more risk. Make sure you know what strategy you’re going for when investing.

But….

These are just the beginning phases of the company, and its already getting a lot of attention. Its been back by Sequoia, one of the world’s biggest and best venture capital firms, and several big-name people are using the product.

Final Take

This is a great option for many people, it hits the perfect spot between gambling and investing, which makes the lull of investing that can make it boring, a much more fun and thrilling ride. So hey, if this is interesting to you, it would be cool to say you were on the platform since day 1, but for a lot of people this won’t be the tool they’ve been looking for. All in all, you’ll know if this is right for you.

Thank you for reading! If you enjoyed this, please consider sharing, it would be greatly appreciated.

***Keep in mind that this is not financial advice in any way, solely for the purpose of entertainment. Consult your financial advisor and/or do your own research before investing.***