Diamond Hands is a popular term on social media platforms. It refers to people who hold their coins even if their portfolio drops in value by more than 20%.
What Is Diamond Hands?
Popularised by r/wallstreetbets
, and later spreading to other social media platforms, the term, diamond hands, is a way of expressing that someone is or will continue HODL-ing an asset
, even if the value of their portfolio suddenly falls by 20% or more. Although “diamond hands” is sometimes used to describe a person who is holding stock
, it is more commonly used as a self-description for someone who holds cryptocurrencies. People who say, “I have diamond hands” (a.k.a. strong hands) deeply believe that cryptocurrencies will drive the future direction of global finance and that mass adoption is inevitable, if not imminent.
This group of cryptocurrency bulls
doesn’t sell, even when a storm of seemingly never-ending FUD
hits the market. Those who have diamond hands might even tell their followers, friends, family, or anyone who is willing to listen to Buy The (F*******) Dip
. Sometimes, diamond hands buy the dip, but the dip keeps dipping
. In other words, prices of cryptocurrencies may go down significantly, but there are people who are still unwilling to sell because they have faith that their favorite cryptocurrency project(s) will one day eventually reach the moon
status. Basically, if you have diamond hands, you are a very optimistic person even when it seems like the sky is falling
On social media platforms, like Reddit and Twitter, diamond hands is often use in its emoji form: 💎🙌. Diamond hands are risk-takers who have a long-term perspective on the market. Often, many people who identify with this group will share adaptations of the Wolf of Wall Street - “I'm not leaving!” GIF to express their steadfast sentiment. Although diamond hands is widely considered to be an admirable group, they are sometimes warned by other investors to ‘take profits’ in fiat or stablecoins when the market surges. Those with diamond hands, however, rarely (if ever) take profits since they firmly believe the market - even if it crashes - will recover and only grow stronger over time.
When the market goes down, many people in the diamond hands group will undoubtedly express themselves on social media with some iteration of “diamond hands.” Crypto investors who decide to sell at low prices after a massive market crash might get teased for having weak hands, paper hands, or spaghetti hands. In other words, this group is the polar opposite of diamond hands.
Author: Kadan Stadelmann, CTO of Komodo
Kadan Stadelmann is a blockchain developer, operations security expert, and Komodo’s Chief Technology Officer (CTO). He strongly identifies with Komodo’s open-source vision and ideology. Kadan’s dedication to the Komodo project is founded on an unwavering desire to make the world a better place. His experience ranges from working in operations security in the government sector and launching technology startups to application development and cryptography. Kadan started his journey into blockchain technology in 2011 and joined the Komodo team in 2016. Kadan has published numerous articles on Forbes, Cointelegraph, Nasdaq, and Yahoo Finance.