While the platform used varies according to the coin, the interest earned is in the form of crypto money. A chart shows where he owns each crypto and the latest interest amount each has offered.
The volatility associated with the crypto market is nothing short of a Six Flags roller coaster ride – some enjoy the dips and use it to boost their positions, while others regret the moment they started.
Recently, bitcoin dropped 50% in a month after hitting an all-time high, dragging the rest of the crypto market down with it.
But for a crypto investor like Mack Lorden, price action isn’t that important because his earnings aren’t just tied to the charts. He passively earns cryptos by holding them in subprime savings accounts that lend to borrowers in exchange for a percentage of interest.
Alternatively, it stakes them, which includes verifying transactions and taking part in the process of validating a blockchain network by promising cryptocurrencies. Those who commit their tokens and are selected to help validate the blockchain are rewarded in the form of more tokens.
Lorden told Insider that he has been investing in crypto since 2017. He is now the founder of Faceless Crypto, an online community that teaches investors ways to leverage the crypto market. He shares most of his informative content on TikTok and starts each video with a signature wave and a “hello” under the Macklorden username.
For Lorden, staking is a way to grow his crypto portfolio without using hard-earned dollars. And he is not alone: ether holders have staked more than $13 billion in ETH on the ethereum 2.0 network, according to data from Etherscan cited in a recent JPMorgan note. The data showed that as of July 5, network users invested 6.1 million ether, up from 5.3 million a month ago.
The staking industry as a whole is expected to generate revenue of $40 billion by 2025, up from an estimated $9 billion currently for token holders and exchanges, according to JPMorgan financial analyst Kenneth Worthington. He predicts that major upgrades from a “proof of work” to “proof of stake” protocol on the Ethereum network will attract more investors.
But earning crypto isn’t as easy as choosing a high-yield savings account at a traditional bank. Interest rates depend on the platform and the coin or coin wagered. Lorden said that rates may also fluctuate more frequently and holdings are often compounded automatically, which means cryptos are restakes.
As for coins deposited directly into a blockchain’s network, the rates vary based on the pool chosen. Finally, earnings are usually paid in the form of held crypto, and investors looking to withdraw in dollars are at the mercy of the exchange rate.
Below is a table showing the platforms Lorden says he uses for each coin and the approximate annual percentage rates or returns they offer.
Coin April or APY (approximate values) platform Type
Bitcoin 6.10% led Subprime savings account
Polygon (MATIC) 10.51% Celsius Network Subprime savings account
Polkadot (DOT) 12%+ Betting on Kraken Central crypto exchange
Universe ( ATOM) 7%+ Betting on Kraken Center crypto exchange
Kusama (KSM) 12%+ Betting on Kraken Central crypto exchange
Ethereum (ETH) 5.05% – 5.35% Celsius Network Subprime savings account
USDC 9.50% led Subprime savings account
Vechain (VET) 1.09% Exit wallet Software wallet
staking PancakeSwap (KEK) 104% PancakeSwap betting on crypto exchange
While this is a conservative way of earning crypto, Lorden believes it is not entirely risk-free.
Lorden said that like any decentralized exchange platform, these networks are vulnerable to various catastrophic events, such as hacking or excessive leverage.
He adds that many of these platforms have insurance policies that protect investors. However, it sticks to the popular saying “not your keys, not your cryptos” which highlights the benefit of having private keys that secure access to funds.
Lorden reduces risk by spreading his coins across various platforms. It also sees staking as less risky than crypto savings accounts, especially staking without custody, which means the crypto is entirely owned by the investor.