Cryptocurrencies have created more millionaires in the last decade than any other investment in history, but they have also caused devastating losses for millions of people. What makes this market so extreme?

It’s fascinating how you mention these extremes because I was just thinking about recent statistics showing that 90% of traders lose money in crypto.

Extremes → Extremos: Los puntos más altos o intensos de una situación, a menudo refiriéndose a opuestos, como un gran éxito o un fracaso severo.

Statistics → Estadísticas: Datos numéricos o información recopilada y analizada para comprender patrones, tendencias o probabilidades en un campo específico.

Traders → Traders: Individuos que compran y venden activos financieros, como acciones, materias primas o criptomonedas, con el objetivo de obtener ganancias a partir de las fluctuaciones del mercado.

Stablecoins move more than 100 billion dollars daily in the crypto market, but here’s the fascinating part: most people don’t even know they exist. It’s as if we have a parallel financial system operating right in front of our eyes.

That makes me think about how digital money is evolving silently. And the most interesting part is that stablecoins are solving problems we didn’t even know we had.

Exactly, and what I find most fascinating is that they are working as a bridge between the traditional world and crypto. Imagine being able to send money instantly anywhere in the world, with the stability of the dollar but without the costs and delays of traditional banks.

Puente → Bridge: Something that connects two different systems, places, or ideas. In technology and finance, a “bridge” allows interaction between two separate environments, such as traditional banking and crypto.

Demoras → Delays: Periods of waiting caused by slow processes or interruptions. In financial contexts, delays often refer to the time it takes for transactions to be processed.

Estabilidad → Stability: The quality of being steady and not likely to change. In economics, it refers to the predictable value of a currency or asset, which helps avoid volatility.

Stablecoins move more than 100 billion dollars daily in the crypto market, but here’s the fascinating part: most people don’t even know they exist. It’s as if we have a parallel financial system operating right in front of our eyes.

That makes me think about how digital money is evolving silently. And the most interesting part is that stablecoins are solving problems we didn’t even know we had.

Exactly, and what I find most fascinating is that they are working as a bridge between the traditional world and crypto. Imagine being able to send money instantly anywhere in the world, with the stability of the dollar but without the costs and delays of traditional banks.

Right, because when you make an international bank transfer, sometimes it takes days to complete, not to mention the fees. But with a stablecoin, the process is almost immediate and at a much lower cost. Although I suppose many people still don’t fully understand how they work.

Transferencia → Transfer: The act of moving money or assets from one place or account to another. In finance, international bank transfers often involve several intermediaries and delays.

Comisiones → Fees: Charges paid for services, especially in banking and financial transactions. These can include service fees, transaction fees, or conversion costs.

Entender → Understand: To grasp the meaning or function of something. In this context, it refers to people not fully knowing how stablecoins operate or what benefits they offer.

Stablecoins move more than 100 billion dollars daily in the crypto market, but here’s the fascinating part: most people don’t even know they exist. It’s as if we have a parallel financial system operating right in front of our eyes.

That makes me think about how digital money is evolving silently. And the most interesting part is that stablecoins are solving problems we didn’t even know we had.

Exactly, and what I find most fascinating is that they are working as a bridge between the traditional world and crypto. Imagine being able to send money instantly anywhere in the world, with the stability of the dollar but without the costs and delays of traditional banks.

Right, because when you make an international bank transfer, sometimes it takes days to complete, not to mention the fees. But with a stablecoin, the process is almost immediate and at a much lower cost. Although I suppose many people still don’t fully understand how they work.

Exactly. Sometimes people think that all cryptocurrencies are as volatile as Bitcoin or Ethereum, but stablecoins were specifically designed to avoid that volatility. They’re like a digital dollar you can use anytime, without needing a bank.

Volatilidad → Volatility: The degree of variation in the price of an asset over time. High volatility means prices can change rapidly and unpredictably, which is common in many cryptocurrencies.

Diseñadas → Designed: Created with a specific purpose or function in mind. Stablecoins are designed to maintain a stable value and reduce price fluctuations.

Necesitar → Need: To require something because it is essential or very important. In this context, stablecoins allow you to use money digitally without the need for a traditional bank.

Stablecoins move more than 100 billion dollars daily in the crypto market, but here’s the fascinating part: most people don’t even know they exist. It’s as if we have a parallel financial system operating right in front of our eyes.

That makes me think about how digital money is evolving silently. And the most interesting part is that stablecoins are solving problems we didn’t even know we had.

Exactly, and what I find most fascinating is that they are working as a bridge between the traditional world and crypto. Imagine being able to send money instantly anywhere in the world, with the stability of the dollar but without the costs and delays of traditional banks.

Right, because when you make an international bank transfer, sometimes it takes days to complete, not to mention the fees. But with a stablecoin, the process is almost immediate and at a much lower cost. Although I suppose many people still don’t fully understand how they work.

Exactly. Sometimes people think that all cryptocurrencies are as volatile as Bitcoin or Ethereum, but stablecoins were specifically designed to avoid that volatility. They’re like a digital dollar you can use anytime, without needing a bank.

And there are different types, right? Not all of them work the same way.

Tipos → Types: Categories or groups with specific characteristics. In crypto, stablecoins are classified into different types based on how they maintain their value.

Funcionar → Work: To operate or perform a task in a certain way. Refers to how something achieves its goal or carries out its function.

Igual → The same: Identical in nature or effect. Used to highlight differences when comparing how things operate or behave.

Stablecoins move more than 100 billion dollars daily in the crypto market, but here’s the fascinating part: most people don’t even know they exist. It’s as if we have a parallel financial system operating right in front of our eyes.

That makes me think about how digital money is evolving silently. And the most interesting part is that stablecoins are solving problems we didn’t even know we had.

Exactly, and what I find most fascinating is that they are working as a bridge between the traditional world and crypto. Imagine being able to send money instantly anywhere in the world, with the stability of the dollar but without the costs and delays of traditional banks.

Right, because when you make an international bank transfer, sometimes it takes days to complete, not to mention the fees. But with a stablecoin, the process is almost immediate and at a much lower cost. Although I suppose many people still don’t fully understand how they work.

Exactly. Sometimes people think that all cryptocurrencies are as volatile as Bitcoin or Ethereum, but stablecoins were specifically designed to avoid that volatility. They’re like a digital dollar you can use anytime, without needing a bank.

And there are different types, right? Not all of them work the same way.

Exactly. There are three main types. First, those backed by fiat money, like Tether (USDT) and USDC, which are guaranteed with dollars in banks or equivalent assets. Then, those backed by crypto assets, like DAI, which use other cryptocurrencies as collateral. And finally, algorithmic ones, which try to maintain their parity with automated mechanisms… although they’ve had issues, as we saw with Terra.

Respaldadas → Backed: Supported or secured by another asset. Stablecoins can be backed by fiat, crypto, or other reserves to maintain their value.

Colateral → Collateral: An asset pledged as security for another asset or loan. In crypto, it refers to tokens held as a guarantee, like how DAI uses crypto as collateral.

Mecanismos → Mechanisms: Systems or processes designed to produce a specific result. Algorithmic stablecoins use automated mechanisms to adjust supply and maintain price stability.