Paper Hands is a slang phrase made popular on Reddit, describing crypto traders who sell too early because they don't have a risky bone in their body. They're completely afraid of losing money because the risk of holding their open position is too high for them to handle
Example
“A trader who bought Bitcoin at $40,000 sold at $38,000 during a brief dip was called 'paper hands' by the community when it rallied back to $50,000 the following week.”