'Prego' is a general term of politeness and openness that can have various equivalents in English, depending on the context. It is used as a response to 'Grazie', but it isn't only 'You're welcome'. It can correspond to 'Of course', 'Go ahead', 'Please do', 'Be my guest', 'There you go', 'Help yourself', and numerous other untranslatable phrases. Context is everything!

Prego means you are welcome. As in welcome to join us, or welcome as a response to thank you.

Oh! Ok. Wow. That's a powerful word. Haha Thanks for taking the time to explain it to me. I looked at the answer you posted the link to and I think it's a great idea. I will give it a try. :)

actually - when replying to "thanks" - there could be no clear distinction between "please there's no need for" and "please do it"; the main fact is, that it's such an instinctive and (hopely!) basic reply, that it is generally "in the flesh" rather than in the consciousness. notwithstanding that, you can always give more complete replies, in order to clarify what you mean: because, we have brutal ordinary situations --when words just come as body reactions and they are meant to express respect (eg: oh excuse me > no problem); and more formal situations --where words are meant to provide more informations (eg: please do one more step). best wishes and please read this answer of mines https://www.italki.com/question/459285 I hope it helps with progressing

Oh yeah. That makes sense. Thanks for so many details. The second one sounds similar to when someone says 'thanks' and we reply in English "not at all". Cool!