In today’s world, even a child knows that a diamond is a valuable stone. Imagine having a piece of that stone, what comes to mind first? You will want to find out the actual value of that stone so that you would know how wealthy you will become from selling it. A risk-taker would think further, what would this stone be worth in 5 years? I mean, it would not be bad to earn more, right? What if it depreciates though? That’s why is callled risk.

You might have heard this so many times “Cryptocurrency is not for the weak!”. This statement is not untrue as there are various ups and downs in the market system, however, the strategic risk takers and those who are well versed on how the system works get good returns on their investments. With the right community and information, you could also find yourself on the veteran level of the crypto traders’ ladder.

The concept of diamond hands in cryptocurrency cannot entirely be likened to the above illustration but it is somewhat related. To gain a comprehensive knowledge of diamond hands, read this article to the end.

What is Diamond Hand in Crypto?

Diamond hands are a set of people who have a greater perspective towards investment in cryptocurrency. These set of people, due to their knowledge and experience on how the market works, they are willing to take risks. There are also other terms used for those on the opposite side. It could be “paper hands”, “weak hands” or “Spaghetti hands”, these names are for those who are not willing to take extra risk in the market. For exmple, if a stock begins to crash, the weak hands do not want to risk losing out funds, hence they sell it off. Diamond hands believe in the rising of the assets to even greater market value. Hence, they keep their assets or even buy more. These group of people identify by the usage of specific forms of emoji or by sharing an adaptation of the Wolf of Wall Street. These animations or characters are used to represent the projective mindsets of diamond hands.

Although diamond hands are viewed and esteemed as master in the crypto world, some investors are strongly against their perspective, and thus, advise to take profits in fiats or stable coins when the markets rises. However, diamond hands have a tenacious perspective that no matter how the market may dip, it will rise again, even stronger. To belong to the diamond hands, you have to be an extreme optimist with strong faith and ability to take risk. These groups do not even bend no matter the pressure to sell. Essentially, diamond hand is not something to be so enthusiastic about, especially if you are not a risk taker or positive individual.

History of Diamond Hands

The expression “Diamond hands” started becoming popular in the year 2018, although it seemed to have been in existence earlier. In 2021, there was a frenzy over the buying of Gamestop, this was when the expression fledged out fully. Due to the erratic nature of the cryptocurrency market, optimists in the crypto network adopted the slang in that year, and it seemed like just the perfect fit. This slang can also be likened to the popular term “HODL” that is used among crypto investors which means “hold on for deal life”.

WallStreetsBets subreddit were the first to use the “diamond hands” expression on Reddit. This group of people are commonly known for their love of memes and pushing great-risk and highly rewarding investments. These community has prompted the use of some other terms in the crypto market, like tendies and stonks, which refers to profit on investment and stocks, respectively.

You may wonder why “diamond hands”? It could be any other expression, why that exact one? Basically, it is believed that diamonds are produced under a lot of pressure. Thus if you can withstand the pressure of selling in the market, and safeguard or multiply your stocks, your investment will grow in worth. Also, diamond is a precious stone, and stones are definitely hard. Thus, it is believed that diamond hands are strong enough to hold onto an investment irrespective of the situation.

Diamond Hands 💎: Is It Worth the Risk?

If you’ve read through this article to this point, you would have seen that diamond hand is definitely not for the ignorant or amateurs. Furthermore, it can come with certain drawbacks, especially in the case of a poor investment choice. That could lead to a great loss as it seems one is holding on to a losing asset.

However, when it comes to risky assets, diamond hands can be a great win. This kind of investment requires that you stand the pressure that hits the market for your assets to gain valuable worth. It is a popular belief that the cryptocurrency business is a lucrative one, it just depends on how long you’re willing to persevere.

Essentially, high-risk investments can be a good deal in cryptocurrency, but it should not take up the major part of your portfolio. It is wiser and more advisable to keep the most of your funds in stable and authentic assets, like the stock market. And when you’re thinking of an interesting investment to add to your portfolio, then you can go for crypto. In this case however, about 5 to 10% of your money can be dedicated to crypto investments as you please. Just maybe those diamond hands will pay off for you down the road., as you would be able to hold out for a longer period, given that a major portion of your assets are secure in a stable investment.