In the past few years, the cryptocurrency market has seen a significantly large growth. With the issuance of many new digital currencies and the increase in their prices, they have garnered the attention of many investors. However, many people still do not know whether they can classify cryptocurrencies as an asset class, although many of those people invest into them.Therefore, this study aims to analyse cryptocurrencies as an investment instrument and to see whether they can be classified as an asset class. We took 5 major asset classes namely; stocks, bonds, real estate, commodities and forex and used them as proxies. For cryptocurrencies, we used the CRIX index as a proxy for the time periods March 31st 2016 to March 31st 2021. To test whether cryptocurrencies could be considered an asset class, this paper aims to analyse cryptocurrencies based on the 7 requirements of an individual asset class which are stable aggregation, Investability, internal homogeneity, external heterogeneity, expected utility, selection skill and cost-effective access. The results showed that cryptocurrencies met all the criteria in order to be considered as an individual asset class. Furthermore, they managed to distinguish themselves from other traditional asset classes in terms of risk and return and their low correlation to the other asset classes provides a diversification benefit to potential investors, providing a more beneficial profile for their risk/return portfolios