Prediction markets and gambling are reshaping crypto trading dynamics in ways leverage trading alone can't match. While perpetual futures dominate volume, on-chain prediction markets unlock genuine price discovery across black swan events. Gambling mechanics—stripped of traditional regulatory constraints—are becoming viable wealth mechanisms for retail participants. The real shift? These alternatives operate on different risk architectures. Leverage trading demands collateral management and liquidation mechanics that filter out smaller players. Prediction markets? They democratize speculation. You're not fighting liquidation bots; you're competing on information asymmetry. As the market matures, we're seeing capital gradually diversify beyond pure derivatives into these newer models. The volatility they introduce actually creates arbitrage opportunities most traders miss. Not saying leverage trading disappears—it won't. But betting on prediction markets gaining institutional backing is a safer long-term play.