Cryptocurrencies function as digital assets by utilizing blockchain technology to secure transactions and maintain a decentralized, public ledger. Each transaction is recorded as a block and linked securely to previous transactions, forming a chain that is resistant to tampering. Users can send and receive cryptocurrencies with relative anonymity, and they are often used for investment, payment, or store of value. Cryptocurrencies offer advantages such as lower transaction fees and increased accessibility, but they also pose risks related to volatility and regulatory scrutiny, shaping their evolving landscape.