A term used to refer to an NFT or crypto holder who has little or no confidence to hold on to their NFTs for the long term and thereby sells their asset when there is a dip.
The Long Explanation
The term refers to a person who quickly sells an NFT, or panic sells an NFT when the market prices drop.
An NFT holder is considered to have paper hands if he/she holds on to their NFT only for a short period. The term is used in a derogatory sense, implying the NFT holder’s lack of confidence or faith in the NFT they bought. 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).
When an NFT holder has paper hands, the person takes only minimal gain or even a loss by selling their NFT too quickly, just because they have no faith in the NFT project or feel nervous about the market.
‘Paper hands’ is often contrasted with ‘diamond hands’ which means to hold on to your asset through a dip.