Technical Definition

Paper hands

Paper hands is slang for someone who sells an investment quickly when prices fall or uncertainty increases.

By Crypto University Editorial
Diamond handsHODLFUD

✦ Key Insight

The phrase can pressure people into holding risk they no longer want, so investment decisions should not be based on social-media labels.

✕ Common Misconceptions

Selling to manage risk is not inherently a mistake.

Detailed Explanation

The phrase is normally used negatively by online investing communities. It contrasts with "diamond hands," which describes continuing to hold despite volatility.

In Practice

“A community may call someone "paper hands" for selling after a sharp market decline.”

Dig Deeper

HODL

Holding a cryptocurrency through volatility instead of trading in and out of it.

FUD

FUD stands for fear, uncertainty, and doubt and describes negative information or sentiment that may influence market behavior.

Diamond hands

Diamond hands is slang for continuing to hold an investment despite large price swings or pressure to sell.

Degen

Degen is crypto slang for a participant who embraces highly speculative, experimental or high-risk opportunities, often with limited conventional risk controls.