What are cryptocurrencies & why should you invest in them?

Cryptocurrencies, often shortened to cryptos, are digital assets designed to work as a medium of exchange that uses cryptography to secure its transactions, control the creation of additional units, and verify the transfer of assets. These decentralized currencies, such as Bitcoin, Ethereum, and Litecoin, operate independently of a central bank or government, allowing transactions to be conducted anonymously and securely. Why should you invest in cryptocurrencies? The answer lies in their potential for growth. Cryptos have demonstrated significant appreciation in value over the years, offering investors an opportunity to diversify their portfolios with an asset class that is uncorrelated to traditional financial markets. Furthermore, the blockchain technology that underpins cryptocurrencies enables innovative use cases that may disrupt established industries, such as smart contracts, decentralized finance (DeFi), and non-fungible tokens (NFTs). However, it's important to note that investing in cryptos involves significant risks, including volatility and the potential for loss of funds. Therefore, it's crucial to conduct thorough research and understand the risks before making any investment decisions.