Concept Of Buy And Sell Walls In Cryptocurrency

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If you are a regular follower of Bitcoin news today, then you must be equipped with all the latest developments that are taking place in the crypto world. Now being an ardent crypto enthusiast you might be aware of the fact that whenever you hold a certain cryptocurrency, the changes in the price of that particular cryptocurrency will surely going to affect you. The main reason behind all this problem is the holders, which are also being termed as ‘whales’. These holders control the crypto prices for their own best interest. These crypto whales do not find it interesting to enable price rise to a certain level; till the time they gather as many cryptocurrencies like Bitcoin, Ripple, Ethereum, or any other digital currency. These whales are involved in generating buy and sell walls with the intention of currency price manipulation. 

Know The Concept Of Buy And Sell Walls

Buy and sell walls depends upon the facilitation of cryptocurrency transactions. Most of the time, transactions are done on the order book, when a certain price is revealed by the buyer to be enabled in buying the currency units. This is done regarding the price where a currency is being traded, at the time of initiating the transaction. Apart from this, it can also be guaranteed for the upcoming time. Suppose if the currency is being traded at $20, and you want to purchase it for $20 units for $19, then the order can be placed by you, resulting in the activation, at the time when the price touches $19. This will make a match between you and the curious seller.

With the entry of the whale, it is expected to see the placing a large order by putting a wall. As for an example, if a whale does not agree for a drop in the price of currency below $20, then the order is expected to be placed for a majority of units. (like 20,000) at $20. Before the currency price is dropped below $20, it is important to complete the big order. This means the piling of the total 20,000 units for $20 initially should be done by sellers. The dropping of the price gets blocked effectively. 

Spreading Of Buy And Sell Walls

Buy and Sell walls are not confined away from a sole trader. With the emergence of big buy and sell order, it is most probably expected about the placing of orders by other investors for a similar price. Buy and sell walls are not created by exchanges alone. This indicates that it is the investors who are involved in the manipulation of prices. Can there be any reason for a casual emergence of a big buy or sell order exempting price manipulation? Some say that high liquidity is the hint of sell walls. They even suggest the availability of currency units for buying. 

Conclusion

If you are abreast with the live crypto news, then it is expected that you must be knowing the recent crypto developments. Cryptocurrency is a pool of many important terminologies, which every newbie crypto enthusiast must understand. Just like Whales and buy ad sell walls, both are inter-related to each other. The term ‘whales’ is given to those crypto holders or big names in the cryptocurrency, who with their clever tactics are involved in the manipulation of the prices. The greed of gaining more and more crypto coins including Bitcoin, Ethereum, or any other currencies prompts them to do it. Buy and sell walls is also the strategy that is influenced by these big players or whales.

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