Animals In The Crypto Investing Market
Welcome to our fun crypto zoo! This is the second part of an article about the different animals of cryptocurrency investment. You can read the first part here: Crypto Whale, Bull and Bear Review.
While you often come across whales, sharks, bears, and bulls when discussing cryptocurrencies, there are a number of other exotic animals that populate the world of cryptocurrencies. You can't always tell who animals are and what they're doing just by looking at them. Let's dive into some of the more interesting and lesser-known terms that will give you an insight into cryptocurrency culture. First, let's look at non-existent crypto animals…
Popular slang for cryptocurrency investing: animals
whale bear
This word is a combination of two popular terms that we discussed in the previous article. Which animal will it be? Well, it's actually the name of a trader with large financial resources who is pessimistic about certain cryptocurrencies and expects his quotes to drop.
Let's finish with some more bearish terms. Things like "bear", "bear trap" and "bear flag" also fall into this category. The term "bearish" means that the trader is pessimistic and the price will fall from the current level. If the market is bearish, you believe the market will go down.
A bear trap is when traders enter a short position when the price of a currency pair is falling, only for the price to reverse and rise. A bearish flag is a technical pattern that provides an extension/continuation of the current downtrend. A bearish flag formation indicates an initial strong bearish movement followed by an upward consolidation wave. A sharp decline is known as a "flagpole", while a rally is called a "flag" itself.
unicorn
Financiers seem to like pictures of animals in markets. The stock market has bulls and bears fighting for price levels, and even unicorns rule it all. A relatively new term, a "unicorn" is a privately held startup company, often in the technology industry, that is valued at more than $1 billion and can achieve greater wealth through an initial public offering (IPO). In recent years, some of these unicorn companies have gone public only to see their stock plummet.
Apes and monkeys
The term "monkey" is often seen in cryptocurrencies. Based on the term "monkey," a "monkey" is used when a seller buys a new token or coin without doing adequate research or due diligence, such as shortly after launch. Why would a dealer do that? Obviously, buying anything for trade without doing some research is not a smart move. Well, such a trader usually does this when they are afraid of missing out on the next big thing or afraid of missing out FOMO.
rabbits
A lot of jargon in the cryptocurrency industry also comes from trading on an exchange. The term "rabbits" is used to describe traders or investors who open a position in a very short period of time. The trading time of these traders is usually minutes.
These types of traders are scalpers and try to make a profit during the day. They don't want overnight (or long term) risk and are just looking for an opportunity to make a quick buck in the intraday market.
Turtles
Turtles are slow buyers, slow sellers and long-term traders. They look at the long-term picture and try to attract as few traders as possible. These types of investors don't care about short-term fluctuations and care more about long-term gains.
Sheep
Sheep are investors who stick to one investment style and do not change depending on market conditions. They are usually the last to enter an uptrend and the last to exit a downtrend. Sheep like to be on the side of the majority (herd) and follow the guru. They are not interested in developing their own investment/trading methods.
Pigs
These investors or traders are impatient, willing to take big risks, greedy and emotional. These investors do not do analysis, are always looking for useful advice and want to make quick money in the stock market. Pigs are the biggest losers in the market.
chicken
Chicken refers to investors who fear the stock market and are therefore risk averse. They avoid market risks by sticking to conservative instruments such as bonds, bank deposits or government bonds.
ostriches
Ostriches are investors who bury their heads in the sand during negative markets, hoping their portfolio won't suffer too much. Such investors ignore negative news in the expectation that it will eventually fade away and not affect their investments. Ostrich investors believe that if they don't know how their portfolio is doing, it can somehow survive and fail.
dogs
Dogs are stocks that have been underperformed by the market. Many financial analysts are watching dog stocks as they expect these stocks to recover in the coming days.
deer
These investors or traders don't really care about bull market or bear market. They are just looking for an opportunity. They are not bulls or bears. For example, traders who buy and sell a company's stock during an initial public offering (IPO), when the stock goes public and begins trading, may be bear traders. They enter the arena with the expectation of using the list, that's why they call these people deer.
samples
Worms are powerful investors/traders who use unethical methods to make money in the stock market. Essentially, these monsters are involved in scams that move the stock market when they become known.
lame ducks
A lame duck is a type of trader or investor that trades and incurs huge losses. Lame ducks either defaulted or went bankrupt because they couldn't cover their trading losses. This phrase can be traced back to the very beginnings of commodity trading and the development of the London Stock Exchange in the mid-1700s.
hawks and doves
Hawks and doves are terms used to describe the type of politicians who take critical positions on various economic situations. In US financial markets, hawks and doves typically refer to interest rates and the Federal Reserve's contrasting approaches to monetary policy. The hawk wants to be tough on the economic situation, and the dove wants to be soft.
Give it to the dogs
This is a popular investment strategy in which investors annually select the 10 highest dividend-paying blue-chip stocks from the Dow Jones Industrial Average (DJIA) index. The main reason to follow the dogs is that they have a simple formula designed to work according to the Dow Jones Index. The concept was first published by Michael O'Higgins in his book The Winning Deer, where he coined the name Doe's Dogs. Similar to this concept, Sensex dogs are used in India.
dead cat jump
Dead cat slang used to temporarily hover during a bear race. Either it could mean a temporary market rally during a bearish move, or it could refer to a particular stock behavior. Interestingly, this expression is used to explain that if you throw a dead cat into a wall at high speed, it will bounce, but it will still be dead.
Jump over Crypto Slot!
Animal snake is not limited to stock. Different breeding strategies are named after insects and birds. Butterfly spreads, condors, and iron condors are option strategies that aim to profit over time or through changes in volatility (or no change).
For example, a long butterfly spread uses option contracts based on a 1:2:1 ratio, where the only options on the outside are the long positions, or arms, and the two options in the middle are short, which make up the body. The shapes of their risk profile charts resemble winged creatures, with a butterfly having a sharper head than a condor or iron condor.
Black swan
Perhaps the most unlikely animal in the Wall Street Zoo is the black swan, which symbolizes the deepest crisis. A black swan usually refers to exceptional events with extreme consequences that people are never prepared for. The bankruptcy of Lehman Brothers in 2008, the "sudden collapse" in May 2010 and the Brexit vote in 2016 are considered black swans. The term was coined by finance professor, author and former Wall Street trader Nassim Nicholas Taleb in his 2007 book Black Swan. "The Impact of the Highly Improbable."
Hamster
Finally, let's decorate our zoo... with a real hamster! In the fall of 2021, a German hamster named Mr. Gox joins millions of crypto enthusiasts to win.
The hamster's business partner initially invests a little over €300 and the hamster spins the "intention wheel" to select a specific coin. Therefore, the hamster passes through the buying or selling tunnel. Each time the hamster does this, its human counterpart buys or sells $20 of the cryptocurrency of their choice.
Hamster trade orders have been posted on both Reddit and Twitch, and the performance is quite impressive. As of September 2021, Gox has outperformed both the S&P 500 and Warren Buffett's flagship fund, Berkshire Hathaway, with returns of around 20% on its initial investment since June.
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