Buy Wall

One method of protecting the current price of a cryptocurrency by placing one or multiple big buy orders. When the diminishing price reaches a set threshold, the buy wall is executed at the threshold value, therefore, ensuring that the price will not drop lower until the buy orders are fully executed.

In cryptocurrency exchanges, trading is accomplished by using an order book. Buyers write in the book their asking prices (bids) and sellers write in the book their selling prices (ask). When one or multiple buyers place a substantial order at a set value, then the price won’t go below such a value until all orders have been completed.

For example, a cryptocurrency currently trades at $12, several buyers place an order at $ 11. As soon as the value goes down to $ 11 the buy wall kicks in and the price won’t go below $11 until all buy orders have been completed. See also sell wall.