Paper Hands Meaning

“Paper Hands” is a slang term that became popular on Reddit and Twitter. It refers to traders, whether in crypto or stocks, who sell their investments too soon because they can’t handle risk.

Origins of the Term “Paper Hands”

The term gained popularity through the Reddit community called r/WallStreetbets, where people discuss stock and options trading.

Application in Crypto Trading

Crypto traders, especially those active on Reddit and Twitter, have adopted the phrase and use it often. Like stock and options traders, crypto traders show paper hands when they sell a cryptocurrency too soon because they fear losing money. They can’t handle the risk of holding onto their position.

Behavior of Paper Hands

Panic sellers have weak hands that fall apart under even the slightest pressure. Crypto traders often call others “paper hands” before they’ve actually sold their position, just while they’re debating whether to stay or leave as the pressure increases.

Representation and Contrast

The term uses emojis of toilet paper and a pair of hands. “Diamond Hands” are the opposite of “paper hands.” They describe someone who can handle high risk and is willing to keep their position open even during very volatile market conditions.

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