I just saw an interesting discussion—about the mindset of holding positions. There are two common types of people in the market: one is paper hands, and the other is diamond hands. It sounds like a joke, but behind it reflects completely different investment logic.

Paper hands usually panic at the slightest price fluctuation, selling at the first sign of a loss. When negative news comes out, they immediately want to escape. These people often buy at high points and sell at lows, being led by market sentiment. They often say things like "this thing is going to zero" or "I'll sell once it stabilizes." Honestly, this mentality is especially obvious in a bear market.

In contrast, diamond hands are much calmer. No matter how much the market fluctuates, they can hold steady. Even if it drops 70%, they remain unfazed. These are usually early entrants or people who truly believe in the project. Their logic is clear: either they have a long-term plan or they genuinely trust the project.

I recall the March 2020 wave when COVID broke out, Bitcoin dropped directly from $9,000 to $3,800, and the market was in despair. At that time, mainstream media were all bearish on BTC, but a group of OGs actually increased their positions. What was the result? By 2021, Bitcoin surged to $69,000, and these people's confidence was rewarded.

There are also plenty of counterexamples. In 2021, Solana went from $30 to around $250, and many newcomers jumped in at $200. But within a few weeks, the price fell back below $100, and many sold at $80–$100, only for Solana to rebound to over $140 later. This is a typical paper hands operation—buy high, sell low, driven entirely by emotion.

But honestly, paper hands aren’t necessarily wrong. The market needs liquidity, and paper hands provide that. The key issue is: you need to know your own risk tolerance. Some people are naturally more susceptible to market emotions—this isn’t a flaw, it’s a matter of risk preference.

True investors aren’t simply "holding" or "selling," but rather allocating assets reasonably within their understanding. Knowing when to hold firm and when to cut losses. This requires self-awareness, not blindly following others’ decisions.

So instead of asking yourself whether you are paper hands or diamond hands, ask: why am I holding this asset? If the answer is "because everyone else is holding," then there’s a problem. Genuine diamond hands are about upgraded understanding and persistence, not being forced. Of course, right now BTC is at 77.77K, and SOL at 87.49K—these are worth paying attention to. The most important thing is to build your own investment logic, rather than being bound by labels like paper hands or diamond hands.