In any market, be it stock, commodities or crypto, buying when the price is rising always presents an increased risk of loss. That’s because by buying high, you are usually speculating that someone else will pay a higher price and keep thing moving. However, when buying in depressed markets, you usually get in at the true value of an asset. Just for context, the risk of someone buying into the stock markets in 2018 is exponentially higher than the risk of someone who got in 2009.
The person getting in now is doing so based on hope, while the one who invested in 2009 bought when there was literally no speculative value in stocks paid the real value of the stocks they bought. What they were paying for per share was the companies real assets be it physical or otherwise. It was the point of lowest risk. Crypto is in the same scenario today.
For a coin like Ethereum Classic (ETC) anyone who bought in late 2017 got in at a point of highest risk. At that point, the price was way above the true value of this crypto. Anyone buying in at that point was doing so on the basis of hope, hope that the next person coming into the market would pay a higher price. That’s a high-risk move. Today, that speculative value is gone, and Ethereum Classic (ETC) is priced at its core value such as the number of Dapps running on it, the developer network and other intrinsic properties.
At this point, even if the market were to drop more, there is very little room for it drop from this point. It cannot go to zero, with all the developments it has going on in the network. This means that anyone getting into Ethereum Classic (ETC) at this point is taking on very little risk. It may retrace even more, but the risk of a retracement is very low as compared to the potential upside. Actually, the downside pressure is more speculative since it is mainly driven by speculators shorting it in the hope that it can go lower.
On the other hand, anyone betting on Ethereum Classic (ETC) going up is betting on its fundamentals, and they are quite strong. For instance, the number of Dapps on this blockchain has grown significantly over the year. This means that its intrinsic value is higher than it was last year, even though its prices were way higher than they are now, further lowering the risks for a long position.
In essence, anyone invested in Ethereum Classic (ETC) at current prices stands a good chance for growth going into 2019 and beyond. Such investors are taking on a very limited amount of risk, relative to the potential returns. If, for instance, the market turns bullish at this point and hits $15, anyone invested at $5 would be sitting on a tidy profit. Given that its fundamentals are much stronger now, it could actually beat this price and possibly test its all-time highs. This would a major payoff for anyone who chooses to risk and invest in Ethereum Classic (ETC) now.