The most promising arrival of 21st century after the Internet is the Cryptocurrency, in the digital System which revolutionize the digital payment system. This is the only currency which is not controlled by any Government or financial institution, a decentralized and peer-to-peer digital currency. This research is focus on Cryptocurrencies, i.e., Bitcoin and Ethereum and their correlation with Other Asset Classes, i.e., Forex, Gold, KSE-100 Index and 10- Year Bond yield. Also the purpose of this research is to make comparative analysis of portfolios, based on Cryptocurrencies and Other Asset Classes, and the risk and return characteristics of these portfolios. The results suggest that there are little or no correlation existed between the Cryptocurrencies and Other Asset Classes. The Performance Analysis of portfolios suggest that adding Cryptocurrencies in the existing portfolio based on Other Asset Classes increases the return of portfolios with increase in portfolio risk, hence, diversification can be achieved that enhances the return of portfolios and decrease the overall portfolio volatility. The results show that adding Cryptocurrencies into portfolio enhanced diversification and Cryptocurrencies proves to be a good diversifier as compared to Other Asset Classes.