You know those beautifully bizarre little kids who decide to wear fancy dress everywhere?
Imagine if loki was the same but instead of a costume, it was whatever new form he had leant shape-shifting.
Odin: Well met, Queen Aelsa Featherwine of the Fay. May I introduce my lady wife, Queen Freyja Freyrdottir, my heir Thor the Thunderer and… (sigh) loki…
Loki: *dragon form* RAWR!!!