In a context like that of Bolivia and much of Latin America—marked by inflation, monetary crisis, and exchange restrictions—cryptocurrencies are increasingly attractive as a store of value, investment opportunity, and transfer method. However, to reap their benefits, security must be at the heart of any decision.
The world of cryptocurrencies offers great opportunities, but also real risks. Online forums and Telegram or WhatsApp groups are full of stories of people who invested in “the new miracle currency” and ended up losing everything in a matter of weeks. There are also accounts of users who forgot their private keys or sent funds to the wrong addresses and watched their savings become trapped in digital limbo forever.
In this article, we will explore the main risks and how to mitigate them, explain why stablecoins are a safe option, and see how fintech companies like PrismaPay.net offer efficient and reliable solutions for moving money internationally.
The world of cryptocurrencies offers great opportunities, but also real risks. ## The Risk of Unknown Coins and Pump and Dump Schemes The crypto world is extremely dynamic, presenting hundreds of new projects daily. Some coins emerge with interesting technology, but many others are born solely for speculative purposes. The infamous pump and dump schemes work like this: a group of investors manipulates the price of an obscure coin, "inflating" it (pumping) by generating hype on social media, and then sells everything at once, causing the price to plummet (dumping).
The result is always the same: those who entered late lose most of their investment. This type of dynamic turns many altcoins (alternative cryptocurrencies) into dangerous bets, more comparable to gambling than to safe investments.
The Contrast: Other Coins vs. Stablecoins
In contrast, there are stablecoins, coins designed to maintain a stable value. These qualify as tokens, as they are representations of assets that operate on the blockchain but are not the native currency (cryptocurrency) of the blockchain. The most important stablecoins, USDT and USDC, are pegged to the US dollar at a 1:1 ratio.
How do stablecoins work?
The operation of stablecoins is quite intuitive, using the following basic characteristics:
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Backing: They are backed by dollar-denominated assets (cash, Treasury bonds, etc.).
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Peering mechanism: Issuers commit to redeeming each token for one real dollar.
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Global liquidity: They operate on multiple blockchains, enabling fast and cheap transfers anywhere in the world.
While Bitcoin or Ethereum, benchmark cryptocurrencies, can fluctuate by 10% in a single day, USDT or USDC maintain a stable value. For someone in Bolivia looking to protect their savings against inflation or send money abroad without surprises, stablecoins are a much safer and more predictable option.
At the same time, they are a very practical payment method since it is much easier to know the price of an asset in USDT than in Bitcoin, for example.
The Risk of Managing Your Own Wallets
Although stablecoins stand out for their security as assets, the method of custody for these assets remains crucial.
Many users store their cryptocurrencies in personal wallets where they control the private keys. The problem is that losing the key is equivalent to losing the money forever. There is no "password recovery button" or technical support to help you. Similarly, sending funds to the wrong address will also result in an irreversible loss. Furthermore, a lapse in security with your computer or mobile phone can expose your wallet to hacks or malware.
This level of responsibility can be overwhelming for someone new to the crypto world.
Fintech Companies Offering Secure Custody
This is where fintech companies like PrismaPay.net come in, combining the innovation of cryptocurrencies with the security of modern financial systems.
PrismaPay specializes in using USDC, one of the most reliable stablecoins on the market, to manage international transfers. The customer deposits fiat currency (for example, Bolivian bolivianos), PrismaPay converts it to USDC, transfers it to the destination country, and disburses it in the local currency (dollars, euros, pesos, etc.), all transparently and securely.
Partnerships with Security Leaders: Fireblocks, Bridge, and Sphere
It's important to emphasize that not all companies or applications are equally secure. In fact, platforms that centralize wallet management pose a risk similar to that of banks, as they can be hacked or go bankrupt, compromising the assets they hold. However, PrismaPay is different.
To guarantee this security, PrismaPay doesn't operate alone. It has agreements with some of the most prestigious companies in cryptocurrency storage and transfer:
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Fireblocks:** [https://www.fireblocks.com/ 'Fireblocks Official Website'] a global platform used by banks, exchanges, and investment funds to ensure the custody of digital assets.
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Bridge and Sphere: companies that offer infrastructure solutions for fast and secure crypto transfers.
These partnerships place PrismaPay at the highest level of financial institutions in terms of security.
Fireblocks and the Multi-Party Computation (MPC) System
One of the pillars of PrismaPay's security is the use of Fireblocks' multi-party computation (MPC) technology.
What is MPC?
Instead of having a single private key protecting funds (which can be lost or stolen), MPC divides that key into multiple fragments that never converge in one place. Each fragment is distributed across different servers and devices, and they only work together to sign a transaction.
This means that:
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There is no single vulnerable point for a hacker to attack.
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Even if one device is compromised, it's not enough to access the funds.
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Security is enhanced without sacrificing speed or efficiency.
In other words, Fireblocks and its MPC offer extra-strong security, since a
PrismaPay: Security, Efficiency, and Low Cost
In a context like Bolivia, where sending money abroad through traditional banks is slow, expensive, and sometimes impossible, PrismaPay presents itself as a clear alternative:
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Security: thanks to professional custody and Fireblocks' MPC technology.
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Efficiency: Transfers can be completed in as little as 1 hour, while banks take between 3 and 7 business days.
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Low cost: Fees are 3% or less, much lower than those charged by banks on top of the parallel exchange rate.
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Accessibility: There are no amount limits or waiting lists; any importer can send large sums, or any individual user can send small amounts without restrictions.
This makes PrismaPay an attractive option for both business owners who need to send money abroad regularly (for example, importers) and those just starting out in the world of cryptocurrencies and looking for a practical and low-risk way to take advantage of them.
Conclusion
The crypto world opens the door to new opportunities, but it also demands caution. Investing in unknown currencies or managing wallets without experience can be risky. Stablecoins, on the other hand, offer stability and trust, and with the help of fintechs like PrismaPay.net, security reaches an institutional level.
Thanks to its partnerships with Fireblocks, Bridge, and Sphere, and the use of multi-party computation, PrismaPay ensures that every transfer is fast, inexpensive, and virtually invulnerable to attacks.
Ultimately, the ultimate security in cryptocurrencies isn't about keeping keys locked away or trusting obscure coins, but about combining solid assets like USDC with world-class infrastructure. PrismaPay makes this possible, providing Bolivians and Latin Americans with a secure, efficient, and reliable tool for moving money in a world where stability is increasingly valuable.
Christian White