Paper Hands is crypto slang for an investor who sells their holdings at the first sign of a price drop or market turbulence. It implies weak conviction and an inability to tolerate short-term volatility.
Context
The term is the opposite of "Diamond Hands" and is generally used in a mocking or critical context within crypto communities. Having paper hands suggests that the investor lets emotions (particularly fear) drive their trading decisions.
When Selling Is Smart
While the community often stigmatizes selling, taking profits or cutting losses can be wise investment strategies. Selling is not always "paper hands" — it can be a calculated risk management decision based on changed fundamentals, reaching a profit target, or portfolio rebalancing.