Buy Wall

A Buy Wall is created on a cryptocurrency exchange when a massive buy order or combination of several large buy orders that all have the same price in the order book for a specific cryptocurrency.

You normally don’t see a buy wall being created by a single trader, unless that trader is a whale.

Buy walls, then, are created by traders with money, and lots of it.

If you and I aren’t creating buys walls, who then?

Whales, a group of traders working together, automated trading bots, institutions, and hedge funds.

These groups can add and remove buy walls repeatedly, in an effort to manipulate market prices.

Buys walls are meant to control prices.

The existence of buy walls has the effect of driving prices up even before it’s filled because a cryptocurrency’s supply will go down considerably once price hits the buy wall and orders are filled.

The volume in the buy wall can drive up prices simply because it’s so large.

Related Terms

Whale

A currency trader or large investor with sizeable holdings of a particular cryptocurrency, who often also has a significant amount of capital invested in the cryptocurrency market as a whole and elsewhere. Whales can be individuals, single businesses, cryptocurrency exchanges, or even institutions.

Bear Whales

Bear Whales use their capital “size” to drive down cryptocurrency prices in hopes of profiting from the price decline. Whales can place and remove sell walls on a CEX’s order book continuously, manipulating other traders to sell off their assets early because they see the sell wall.

Limit Order

An order that lets a trader buy or sell a cryptocurrency at a specific price or better. When a limit order is placed, a trader has to wait for the asset he’s buying or selling to reach a certain price. Limit orders will go to the order book and look at the limit orders already placed. The order book will fill the order once the last price reaches the limit price or better.

Market Order

Soemtimes called instant orders, an order that lets a trader buy or sell a cryptocurrency immediately. When a market order is placed, a trader doesn’t have to wait for the asset he’s buying or selling to reach a certain price. Market orders don’t guarantee the exact price that you see on the screen, but market orders are the fastest way to buy or sell.

Binance

Binance is the largest cryptocurrency exchange by daily trading volume in the world. It experienced US $34 trillion in trading volume in 2021. The Binance trading platform is known for low trading fees, a large number of supported cryptocurrencies, and a large number of order types, including Limit orders, market orders, stop-limit orders, trailing stop orders, post-only orders, peer-to-peer trading, margin trading, and one-cancels-the-other orders