You don't need to be a trader, a coder, or even particularly interested in politics to make money with prediction market arbitrage. You just need an account on two platforms and an automated bot that does the math for you. Here's exactly how to go from zero to earning in 30 minutes.
What you need before starting
- A Polymarket account — requires a crypto wallet (MetaMask or similar) funded with USDC on Polygon
- A Kalshi account — requires US residency and a funded USD account (bank transfer or debit card)
- Starting capital: $500–$1,000 split between both platforms (you can start with less, but returns will be minimal)
- An Arbitrage Agent account — sign up here
Step 1: Create your accounts (10 minutes)
Polymarket: Go to polymarket.com, connect your wallet, and deposit USDC. If you don't have USDC, you can buy it on Coinbase and send it to your Polygon wallet. Minimum deposit: ~$50.
Kalshi: Go to kalshi.com, create an account with your real name and US address, verify your identity (instant for most users), and deposit via bank transfer. Minimum deposit: $5.
Split your starting capital roughly 50/50 between both platforms. You'll need balance on both sides to execute arbitrage trades.
Step 2: Connect to Arbitrage Agent (5 minutes)
- Log in to your Arbitrage Agent dashboard
- Go to Settings → API Keys
- Enter your Polymarket API key (found in Polymarket → Settings → API)
- Enter your Kalshi API key (found in Kalshi → Account → API Keys)
- The bot will verify connectivity to both platforms
Step 3: Configure risk settings (5 minutes)
Before going live, set your risk parameters:
- Max position per market: Start with $50–$100. This limits how much the bot can deploy on any single event.
- Minimum net edge: Set to 1.5%. The bot will only trade opportunities with at least 1.5% profit after fees.
- Max total exposure: Set to 80% of your total capital. Keeps a cash buffer on both platforms.
- Kill switch: Enable it. If something unexpected happens, one click stops all trading.
Step 4: Test with dry-run mode (5 minutes)
Enable dry-run mode in your dashboard. The bot will scan markets and flag opportunities exactly as it would in live mode — but it won't place any real orders. Watch it for a few hours to see:
- How many opportunities it finds
- What the typical spread sizes look like
- How quickly opportunities appear and disappear
This builds confidence that the system works before you risk real money.
Step 5: Go live (1 minute)
Disable dry-run mode. The bot starts trading immediately. You'll see trades appearing in your dashboard as they execute. Each trade shows:
- The event being traded
- Which side was bought on which platform
- The gross and net edge
- Expected profit when the contract settles
What to expect in your first week
With $1,000 deployed ($500 on each platform) and conservative settings:
- Trades: 5–15 completed arbitrage trades
- Gross profit: $10–$30 (before the monthly fee)
- Settlement: Some contracts settle within days, others take weeks. Your capital is locked until settlement.
Don't panic if the dashboard shows "unrealised P&L" — arbitrage profits are guaranteed at settlement, but the capital is committed until the event resolves.
Common beginner mistakes
- Putting all capital on one platform: You need balance on BOTH sides. If Polymarket is funded but Kalshi is empty, the bot can't trade.
- Setting minimum edge too low: Below 1%, fees eat most of the profit. Stay at 1.5%+ to start.
- Expecting instant riches: Arbitrage is a compounding strategy, not a lottery ticket. See realistic return expectations.
- Ignoring rebalancing: After several trades, one platform may have more capital than the other. Check weekly and transfer funds if the balance is lopsided.
Frequently asked questions
Do I need to know anything about the events being traded?
No. The bot doesn't care about outcomes — it profits from price differences, not predictions. You could run it without ever reading a single market question.
What if I'm not in the US?
Kalshi currently requires US residency. If you're outside the US, you can only use Polymarket. Cross-platform arbitrage requires access to both platforms.
Can I lose money?
On pure arbitrage trades (both legs filled), no — the profit is mathematically locked in. The risk is a partial fill (one leg executes, the other doesn't), which leaves you with an open directional position. Arbitrage Agent minimises this with simultaneous execution and conservative position sizing.
How do taxes work?
Prediction market profits are taxable income in most jurisdictions. On Kalshi (US-regulated), you'll receive a 1099 form. On Polymarket, you're responsible for reporting. Consult a tax professional for your specific situation.