The crypto industry can feel like a closed niche for an average observer looking from the outside due to the Exclusive slang or Lingo often used by long-time members of the industry. 

These slang are so widely used in the crypto sector that some of them have made their way into the dictionary. 

The interesting thing about crypto slang is that it is used widely across the various classes in the crypto industry. From an average crypto holder to a Crypto project founder with billions in assets, the various classes are brought together by a common lingua franca which is exclusively used within the industry and no other place. 

The crypto industry by no means is a growing and increasingly significant part of the global space with over 400 million crypto holders in the world. 

The industry which is valued in trillions of dollars has attracted heavy players in the financial sector who initially shunned the idea of decentralized money and are now heavily invested in it. 

Financial Giants like Blackrock headed by Larry Fink and Microstrategy Co-founded by Michael Saylor are all doubling down on their Crypto acquisition, especially Bitcoin. The duo have made positive remarks on Bitcoin as an asset worthy of investment this year. 

The Slang used in the crypto sector is widely going mainstream with some overlapping into traditional finance. 

For example, Crypto whales are large holders of a crypto asset. They usually hold above $ 1 million and their on-chain activity has the power to affect the price of crypto assets. Shrimps on the other hand are the direct opposite of whales usually small-time holders who sell their tiny crypto assets as the market goes up. 

In this crypto clock article, we are going to look at Paper Hands vs Diamond hands and what the two terms entail. 

Diamond Hands 

Diamond hands is a crypto term used to refer to investors who invest for the long run and are not easily moved by market fluctuations. 

Diamond hands are mostly long-term and experienced crypto investors who have mastered the art of reining in their emotions and sticking with their initial investment decisions despite the current market situation. 

Diamond hands are traders with high-risk appetites and are willing to wait for their crypto assets to reach their expected highest pricing before selling. 

The activities of Diamond hands traders are capable of influencing the circulating supply of crypto assets. 

For example, In May this year, Ethereum diamond hands accumulated 74% of Ether’s total circulating supply, which made up to ETH 14,350,000 or $26 billion. 

There is a clear distinction between Diamond Hands and crypto whales. Crypto whales are usually holding their crypto assets for an unlimited time frame while diamond hands are willing to sell once the asset hits its highest expected price. 

Paper Hands 

Paper hands is a crypto term used to describe investors and traders who are the direct opposite of Diamond Hands. 

Paper hands as a term is used to describe Crypto investors who sell off their crypto assets at the first sign of trouble. 

The crypto market is notorious for its volatility and this drives various traders and investors to try to mitigate their losses by selling off their assets as soon as turbulence is sighted. 

Paper hand traders have a low-risk appetite and are usually Swing traders and day traders. 

Paper hand investors are big investors in memecoins which is a natural fit due to the extreme volatility of Meme coins. 

A good example of paper hands activity is the case of Pepe memecoin after its launch. The memecoin witnessed a 7,000 percent hike in the first seventeen days of its launch. Speculation about Pepe coin being a scam coin made rounds leading to paperhand investors dumping all their tokens. 

Pepe has gone on to remain one of the strongest memecoins as diamond hands investors held on to it while paper hands dumped. 

This is a classic example of the difference between the two types of investors or traders and a strong case in the paper hands vs diamond hands debate.

With that being said, both kinds of investors despite the disparity in risk appetite still have a part to play in the markets that are mutually exclusive.