Diamond hands is a cryptocurrency slang phrase that refers to people who hold on to their coins even when volatility batters their portfolio and increases the pressure to sell.
The Long Explanation
The term ‘diamond hands’ may have first appeared on Reddit before spreading to other social media platforms like Twitter. A popular term amongst crypto investors it refers to a high-risk tolerance by an investor.
An investor with such tolerance for risk wouldn’t sell off their assets in panic during big fluctuations in prices. Instead, the investor battens down the hatches, trims the main, and holds course as they await a favorable course correction.
‘Diamond hands’ is also often used in a more generalized fashion to describe all crypto believers who continue to stockpile their crypto assets whether the market is bullish or bearish.
These people often refer to themselves as having “diamond hands” – a reference to their unwavering belief in crypto as the inevitable innovative driver of the future of global finance and tech. Even when the market is hit with a series of FUD (fear, uncertainty and doubt), these bullish investors hold strong.
‘Diamond hands’ is often contrasted with ‘paper hands’ which means to sell too early. An investor with paper hands quakes at the first sign of a FUD and offloads their assets rather than HODL-ing (holding on for dear life).
Despite the obvious risks associated with having diamond hands, it is often a great asset for investors. This is particularly true in the highly volatile crypto market where there are usually many highs and lows. Investors with diamond hands are less likely to be shaken off the market by short-term FUDs.
The term is often used on social media in its emoji form of a diamond and a raised hand: 💎🙌. Having originally achieved popularity during the era of the subreddit r/wallstreetbets, it is commonly used on social media during bearish runs in the crypto market.
Some commonly used antonyms of diamond hands include:
- Paper hands
- Spaghetti hands
- Weak hands
Diamond hands is mostly used as is or via emoji representation 💎🙌, but it is also sometimes referred to as “strong hands”.