What does ‘diamond hands’ mean in crypto? I see people using it when markets crash. Is it just a meme, or is there a real strategy here?
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Understanding "Diamond Hands" in Crypto Investing
Understanding "Diamond Hands" in Crypto Investing
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Diamond hands’ refers to holding investments through extreme volatility without panic-selling, even during steep drops. The term started as a typo (‘HODL’) in a Bitcoin forum post during a 2013 crash but evolved into a mantra for long-term believers. The Diamond Hands guide https://paybis.com/blog/glossary/diamond-hands/ explains it’s about conviction in assets with strong fundamentals—like holding Bitcoin through the 2022 dip below $20k, which rewarded those who waited. However, it’s not blind stubbornness: if a project loses utility (e.g., Terra/LUNA), cutting losses is smarter. Use this strategy for blue-chip assets (BTC, ETH) and pair it with dollar-cost averaging to reduce risk. The key? Balance patience with research—true diamond hands avoid hype-driven ‘shitcoins