Paper Hands is crypto slang describing investors who quickly sell their holdings at the first sign of market decline or negative news. It is the opposite of "diamond hands."
Characteristics of paper hands: Panic selling during dips, low risk tolerance, emotional decision-making, and short-term focus.
While paper hands is often used negatively, taking profits or cutting losses can be legitimate risk management strategies.
Finding balance: Have a clear investment thesis, set stop-losses and take-profit levels, avoid emotional decisions, and recognize that both holding and selling have their place.