Cryptocurrencies are data that exist on the internet. To be sure, trading on digital currencies is the same as investing, the only difference is, cryptocurrency trading is basically self-regulated without a central authority that provides control and monitors against possible fraud, unlike traditional investment where you have market regulators, etc.,
These digital monies use complex algorithms called blockchain, a decentralized ledger that is running on hundreds of thousands of computers across the globe, ensuring a democratized environment. The technology also makes blockchain, and cryptocurrencies, nearly tamper-proof. In addition, it takes a tremendous amount of computing power to generate any counterfeit currency that it is almost impossible for any individual or group actually to do it.
To be sure, all the reported hacking and security breach on digital currency exchanges were able to exploit the security vulnerabilities of the exchanges, but not the blockchain itself.