Paper Hands is a slang phrase made popular on Reddit and Twitter, describing traders (crypto and stock) who sell too early, usually because they don’t have a risky bone in their body.
The paper hands phrase was made popular by the Reddit community called r/WallStreetbets, a subreddit where community members discuss stock and options trading.
Crypto traders, mainly of whom frequent Reddit and Twitter, have taken the phrase under their own wing and use it as well.
As with stock and options trading, crypto traders have paper hands when they exit a cryptocurrency position too early because they’re afraid of losing money because the risk of holding their position is too high for them to handle.
These panic sellers have hands made of paper, that crumble and fold even under the slightest pressure.
Crypto traders label other crypto traders “paper hands” sometimes even before they’ve actually exited a position and are merely debating whether to stay in or get out as the pressure builds.
The term is depicted by emojis for toilet paper and a pair of hands.
Diamond Hands are the opposite of paper hands, describing someone with increased levels of risk tolerance, who is willing to hold an open position even through the most volatile market conditions.