What Do Paper Hands Mean?

The term “Paper Hands” is used to describe an investor who sells their investment at the first sign of financial turmoil in fear of potential losses. Investors with “Paper Hands” are associated with having a low-risk tolerance, as they will often miss out on potential gains if the market rebounds.

Connotation 

The term has a negative connotation and is often used to mock early sellers. If someone is described as having “Paper Hands”, they are seen as easily panicked and lacking resolve. 

Antonym

The term “Paper Hands” contrast with “Diamond Hands”, which is used to refer to an investor who holds onto their investment despite huge price fluctuations.

Origin 

The term gained popularity during the notorious GameStop short squeeze in 2021 on Reddit, where investors caused a surge in the price of the stock. The term was used to describe investors who either cashed out for a small profit or sold their shares when the price dropped, losing on potential gains when the stock price skyrocketed.

Paper Hands Out 

A common term that many users also use is the phrase – “Paper hands out”. This refers to the “paper hand investors” selling their position. 

For example, an investor might say, “Paper hands out. Let’s moon!”. This phrase is generally seen as positive, and it urges other investors to purchase or hold onto their assets. 

This is despite the decrease in price, as when the “paper hands” sell their assets, it also helps to reduce the selling pressure on their investment.

Examples

Here are some ways “Paper Hands” can be used:

• Dip eaten. Paper hands wrecked!

• Shake out the paper hands

• Paper hands destroyed once again

Real talk. I enjoy picking up cheap NFTs during market downturns.

Shout out to all the paper hands.

— Crypto Snooper 🔎 (@CryptoSnooper_) June 30, 2023