What Are Diamond Hands?
Diamond hands refer to holding a financial asset and not selling it, regardless of its volatility
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๐ 2:43 PM
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May 10, 2025
โ๏ธ By Ecojames
Diamond hands is an expression that originated in online investor communities on platforms like Reddit and Twitter. It refers to holding a financial asset and not selling it, regardless of its volatility.
How diamond hands works in crypto
Investors with diamond hands:
1. Ignore short-term price swings โ They believe in long-term growth.
2. Resist FUD (Fear, Uncertainty, and Doubt) โ They don't sell just because of bad news.
3. Hold through market crashes โ Even when assets lose 50% or more of their value.
4. Stick to their investment strategy โ They trust their research and don't react emotionally.
For example:
1. Bitcoin's 2021 Crash โ BTC dropped from $69,000 to $30,000, but diamond hands held on and saw BTC rebound in 2023.
2. Ethereum's Early Days โ ETH fell from $1,400 in 2018 to $80, but long-term holders profited when ETH hit $4,800 in 2021.
The Benefits of Having โDiamond Handsโ
- Keeping your diamond hands raised is not easy during periods of market volatility, but while they may see short-term losses, holding on to investments when the market is down can often lead to making significant gains in the long run.
- In the financial world, banks, companies, and investment funds often have diamond hands, as they have the capacity to hold onto their investments without worrying about market fluctuations. However, individual investors can also benefit from adopting this approach and keeping their assets during periods of uncertainty.