What are Diamond Hands

The term "diamond hands" originated within the cryptocurrency and stock trading communities, particularly gaining popularity during the GameStop short squeeze in early 2021. It describes the steadfast resolve of an investor to hold onto their assets during periods of extreme price fluctuations, demonstrating a refusal to sell even when faced with potential losses. The metaphor compares the strength of one's resolve to the indestructible nature of diamonds, suggesting that those with diamond hands are both resilient and committed.

Investors who possess diamond hands often believe in the long-term potential of their assets, regardless of short-term market dynamics. This mentality can be contrasted with paper hands. Investors often proudly refer to themselves as 'diamond hands' on social media such as Reddit and X.com, as a way to demonstrate their conviction and willingness to hold onto their investments despite market volatility.