Who are bulls and bears?
Bulls and bears — you may have heard about them somewhere before! But who are they? These are the types of traders who both buy and sell, but are positioned to profit from the opposite market movements.
The main strategy for bulls is simple — buy assets that you expect to grow in value. They predict price growth, that is.
Bears predict against assets. They don’t buy, they sell cryptocurrencies, and make money predicting on the price to go down.
Why these two animals? There are two possible explanations: one is that they come from a story written by a British satirist John Arbuthnot. In his 18th century story, a character with a last name Bull got into a fight with another, last name Bear, on a stock exchange floor.
Another explanation comes from the fact that bears and bulls attack their opponents differently. Bulls attack by lifting their horns, and bears strike their opponents with their claws in a downward motion. These can be tied to market movements: a bull market goes up, a bear market goes down.
And you, are you a bull or a bear? Let us know in the comments!