Prediction markets and binary options share a core concept: contracts that settle to "yes" or "no" based on an event's outcome. Both essentially price the probability of that event occurring.

However, their scopes diverge significantly. Prediction markets embrace a broad spectrum of verifiable events.

These can include anything from election results to weather patterns, fostering accurate forecasting through financial incentives.

Binary options, in contrast, are strictly focused on the price movements of financial assets. They are a more specialized trading instrument.

The regulatory landscape also presents a key difference. Binary options are subject to stricter regulations due to their inherently speculative nature.

Crypto prediction markets, however, are still in their nascent stages. They represent an evolving area within the digital asset space.