Diamond Hands vs Paper Hands
The phrase "diamond hands" and "paper hands" has gained popularity among the crypto community. These terms are used mainly by the trader community over Reddit. Let’s continue to understand what this means.
In a word, "diamond hands" refers to continuing to cling onto an investment asset despite risk and volatility. These investors are prepared to stick to a crypto asset even when it experiences a sharp decline in value because they think it will eventually increase.
The word's literal meaning denotes toughness, reflecting the diamond's indestructible structural strength. This might also be interpreted negatively as a rigid and firm decision to hold the investments despite their falling value, hazards, and losses. People with diamond hands ignore short-term spikes in favor of their investment's long-term gains.
The opposite of having "diamond hands" is having "paper hands." This phrase refers to investors with a low-risk tolerance. As a result, they sell their crypto or other investments in FOMO as soon as pressure arises, such as when prices are high and appear to be headed downward or when prices are declining. These panic investors have paper- hands that break and fold at the slightest pressure.
People with "diamond hands" can be perceived as being too firm, and those with "paper hands" might be perceived as being excessively cautious. So which hands do you have: "Diamond hands" or "Paper hands?"