Wallet connection — Definition | Polymarket Trade

In depth

Wallet connection is the process of linking your self-custodial cryptocurrency wallet to the Polymarket Trade platform. When you connect a wallet, you authorize the trading interface to request transaction signatures from your wallet application (such as MetaMask, Phantom, or Coinbase Wallet), enabling you to trade prediction market shares directly from your own funds. This connection is temporary and session-based, meaning it establishes a communication bridge between the web interface and your wallet for the duration of your browsing session.

In prediction markets, wallet connection is fundamental to how blockchain-based trading works. Unlike traditional centralized trading platforms where you deposit funds into a custodial account managed by the exchange, prediction markets operate on public blockchains where you retain ownership of your assets in your own wallet. The Polymarket interface cannot move your funds without your explicit approval via wallet signature. This is why wallet connection exists: it creates a secure channel for the interface to ask your wallet to sign trades, approve token spending, or execute complex orders, all while your private keys remain stored locally on your device (or in a hardware wallet) and never leave your control.

When you visit Polymarket Trade, you'll see a "Connect Wallet" button in the top navigation. Clicking it presents a list of supported wallets (MetaMask, Phantom, Coinbase Wallet, and any other EIP-1193 compatible wallet installed as a browser extension or mobile app). After selecting your wallet, a popup appears in that wallet asking you to authorize the connection to polymarkettrade.app. This authorization does not grant Polymarket permission to spend your funds, move your assets, or sign transactions on your behalf. It only establishes the communication protocol. After connection, your wallet address appears in the interface, and you can place orders. When you attempt to buy or sell shares, another wallet popup appears asking you to sign the specific transaction before it is broadcast to the blockchain. You can reject any transaction signature request, and the trade simply will not execute.

A common misconception is that connecting your wallet gives the website access to your funds. This is false. Connection only establishes a communication link; actual fund movement requires your explicit signature on each transaction. Many newcomers also assume that if their browser is closed or they navigate away, they will lose their connection, and they must re-enter their wallet password. In reality, wallet connections are session-scoped, so reloading the page will require you to reconnect, but this is a security feature, not a limitation. Your wallet remains secure, and the site has no persistent access to it. Another pitfall is confusing wallet connection with wallet approval. When you connect, you authorize the interface to ask for signatures. When you place an order for the first time in a new market, you may see a separate request to approve token spending (for USDC), which is a different permission that allows the smart contract to spend up to a specified amount from your balance. Both steps are necessary and both remain under your control.

Wallet connection is closely tied to several related concepts. Smart contract interaction refers to any time your wallet signs a transaction that executes code on the blockchain, which is exactly what happens when you place an order. EIP-1193 is the Ethereum JSON-RPC standard that defines how web applications communicate with wallets, and it is the protocol underlying all wallet connections on Polymarket. Gas fees are the cost to broadcast a signed transaction to the blockchain, and you pay these whenever your wallet signs an order. Account abstraction and account recovery are emerging concepts that aim to make wallet connections and key management more user-friendly, though they do not yet apply to standard wallets like MetaMask.

Wallet connection is designed to be seamless and secure. Modern wallets are highly optimized, and most connections take a few seconds. The security model is robust: your wallet controls the entire signature process, the interface never sees your private keys, and every action requires your approval. This decentralized architecture is the core advantage of prediction markets on public blockchains. While it requires a few more steps than traditional centralized trading, it ensures that you, not the platform, own and control your assets at all times. Understanding how wallet connection works removes much of the friction and anxiety that newcomers feel when entering prediction markets.

Example

Suppose you want to buy 100 shares of "Will Bitcoin exceed $100,000 by year-end?" at a price of 0.45 USDC per share. After connecting your MetaMask wallet and entering your order parameters on Polymarket Trade, you click "Place Order." MetaMask then asks you to review and sign the trade, showing the market details and gas fee. You approve the signature, and your order is broadcast to the blockchain.