What Does Paper Hands Mean?

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Traders with “diamond hands” believe in the eventual profitability of stocks/crypto despite value dropping. But what does “paper hands” mean?

“Paper hands” is another one of those crypto-related buzzwords that get heard time and time again despite many not knowing what it means.

That’s where we come in—to help boost your blockchain knowledge!

So, let’s learn what this term means once and for all.

About the Term “Paper Hands”

Paper Hands is the word for someone who sells too early. For example, regarding the stock and crypto market, someone with these types of “hands” is someone that exits a position of folds too early because of worries regarding financial risks. Therefore, they panic sell.

It is said that those who panic sell have hands like paper because they fold or break with the tiniest bit of pressure—bringing the term to light.

Many perceive having “hands like paper” as unfavorable, therefore, commonly use the term alongside the toilet paper and hands emoji for this reason.

Opposingly, there’s a term called diamond hands, which represents a trader who believes in the eventual profitability of their stocks/crypto and continues to hold on despite value dropping below the purchase price.

Who Created Such a Term?

The subreddit WallStreetBets (WSB) commonly uses the term, making it popular alongside “FOMO”, when referring to the fear of missing out on stock opportunities.

Paper hands mostly became famous in 2021, when the subreddit promoted many meme stocks, like GameStop.

Consequently, you will typically notice people use the term as a noun on social media channels (Reddit, Twitter, Instagram, etc.), like “You really do have paper hands, don’t you?”.

Many cryptocurrency traders also use the term when trading in the highly volatile sector that needs investors with diamond hands—ones that can withstand market volatility without quitting.

Wrap It Up (and No, Not in Toilet Roll)

In short, the term refers to those who find investing too much and taking risks scary, thus, exit positions once noticing signs of slight volatility.

Although minimizing losses when investing is necessary in the market, selling investments too early can cause investors to miss out on significant gains.

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