The term ‘weak hands’ refers to an investor with low risk tolerance who is prone to sell their assets swiftly due to market volatility or decline in value, often influenced by emotion rather than strategic planning.

Weak Hands Meaning

The term weak hands often surfaces in the volatile world of cryptocurrency trading. It describes an investor’s tendency to quickly sell off assets at the first hint of a price drop. Let’s break down the attributes of a weak hands trader:

Contrastingly, the term diamond hands refers to traders who hold steadfast to their investments through market turbulence.

In the futures market, ‘weak hands’ signifies a trader focused on price speculation without an interest in the actual asset.

Understanding these terms can offer insights into trading behaviors and market dynamics — vital for making informed decisions in the crypto space.