Paper Hands

Paper hands is a slang term used in crypto and stock trading to describe investors who sell their holdings quickly at the first sign of a price drop or volatility. It implies a lack of conviction or emotional resilience in the face of market swings.

How It’s Used in the Market

The phrase often surfaces during market downturns, where “paper hands” investors exit positions early, missing out on potential rebounds. It’s the opposite of having “diamond hands,” or holding long-term despite volatility.

Why the Term Matters in Crypto Culture

Paper hands are frequently criticized in trading communities for contributing to price drops through panic selling. The term reflects the psychological pressure that fear and uncertainty exert on retail investors.