In crypto, the term Diamond Hands is used to describe an investor who holds his investments despite large price fluctuations. When the market bottoms out and collapses, the “Diamond Hands” keep holding their positions in hopes of resurrecting their investments. Conversely, “Diamond Hands” continue to hold their positions even if the price rises because they sell their investments only after large price increases.
It is a term used among the crypto and investment communities due to the high volatility of their investments. Investors with “Diamond Hands” are associated with a high risk tolerance.
The term has a positive connotation. If someone is described as having “Diamond Hands”, they are known as trustworthy and willful. The term “Diamond Hands” is also referred to as ” HODL It is also associated with. The abbreviation “Wait for dear life” is used to encourage other traders to hold their positions.
In crypto, the term Diamond Hands contrasts with “Paper Hands”, which refers to someone who sells their positions too early due to price fluctuations. “ Paper Hands The term ” carries a generally negative connotation. The term gained popularity during the notorious GameStop short squeeze on Reddit in 2021 when investors caused a spike in the stock price. During this period, investors urged other investors to make the stock a “Diamond Hand” and hedge their positions.
