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by Choronzon 4565 days ago
Classical Market making is probably the safest way to profit from bitcoin as the spread is so damn high. Good luck finding a hedging instrument though.
2 comments

If it's supposedly safe, highly profitable, and no one's doing it (spread's still crazy), something's very very wrong.
Slow transaction speeds leave you with inventory for way too long (the bane of market makers ) and as you have no correlated instruments you can't even hedge the inventory you have.
http://www.amazon.co.uk/Option-Trading-Volatility-Strategies...

An excellent chapter about market making in here,however you would have to adjust it quite a bit for bitcoin.