Technically you can't play an encrypted game without it being decrypted first, or they wont work at all, this is the case in any encryption...
There might be an occasion bug with the crypto system that could cause corruption or improper decryption but overall its been pretty good, all decryption its done before hand so there will be no performance hit while playing .
If you are talking about encrypted save games, depends on if you want the save games encrypted so you can transfer them to psp and back, then that's your call I prefer to use unencrypted saves, at least until more bugs are worked out.
There might be an occasion bug with the crypto system that could cause corruption or improper decryption but overall its been pretty good, all decryption its done before hand so there will be no performance hit while playing .
If you are talking about encrypted save games, depends on if you want the save games encrypted so you can transfer them to psp and back, then that's your call I prefer to use unencrypted saves, at least until more bugs are worked out.

Try Out JPCSP Launcher v1.8.0.4 | How to post a log