Buy Wall
What is Buy Wall?
A buy wall is the consequence of a single large buy order or the combination of numerous large buy orders placed in the order book of a certain market at the same price. A wealthy individual, group of traders, or institution can construct a buy wall.
Understanding Buy Wall
Trading on cryptocurrency exchanges takes place through an order book, in which buyers indicate their buying prices (bids) and sellers indicate their selling prices (asks). Essentially, buy walls keep market prices from falling because they generate a huge number of orders at the same price, requiring big sums of money to be completed and passed over.
Buy or sell walls typically develop when significant holders (whales) of any cryptocurrency seek to manipulate the pricing to their advantage. As a result, whale traders frequently construct buy and sell barriers in an attempt to manipulate markets.
When large buy or sell orders appear in the order book, other traders typically put their orders immediately after the walls.
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More articlesDamir is the team leader, product manager, and editor at Metaverse Post, covering topics such as AI/ML, AGI, LLMs, Metaverse, and Web3-related fields. His articles attract a massive audience of over a million users every month. He appears to be an expert with 10 years of experience in SEO and digital marketing. Damir has been mentioned in Mashable, Wired, Cointelegraph, The New Yorker, Inside.com, Entrepreneur, BeInCrypto, and other publications. He travels between the UAE, Turkey, Russia, and the CIS as a digital nomad. Damir earned a bachelor's degree in physics, which he believes has given him the critical thinking skills needed to be successful in the ever-changing landscape of the internet.