3 Easy Ways to Make Passive Income
Let's look at three methods you can start earning passive income right now. The passive revenue created will be tiny, at least at first, because these are relatively easy to start.
However, the cumulative impact will occur when you invest more money over time, and you will begin to see significant results. To begin, I recommend the following three passive income options:
1. Cryptocurrency Staking
If you are comfortable with the idea of investing in cryptocurrencies like bitcoin and ethereum, you are going to like this one. You simply buy the cryptocurrency of your choice and stake it on your exchange platform.
Staking is essentially locking up the amount of crypto you hold with your exchange, and in return you earn rewards or interest.
The caveat is that you need to buy a cryptocurrency that allows staking. For instance, I use Coinbase to buy and hold my crypto. I then turn on the staking option for the coin I own, and Coinbase pays me interest for locking up my coins with them.
Think of it as a savings account with your bank that earns you interest every month. You can easily get started by signing up for Coinbase and buying crypto for as little as $100.
2. Dividend Stocks
Arguably, the easiest way to start making passive income is to simply buy dividend stocks. Then, you just sit back and reap the benefits of owning dividend companies.
Simply put, these companies will share a portion of their profits with you as a thank you for investing your capital with them. Every few months, these companies will send you a check without you having to do anything else.
If you want to learn more about how to get started, you can read my guide to dividend investing or my top 10 dividend companies.
3. REIT
Real estate is a popular investing strategy used to make passive income. But that usually requires a large amount of cash to just get started on buying your first property. However, you can still get started investing in real estate with as little as $10 by investing in REITs.
REIT stands for Real Estate Investment Trust. Simply, it is a company that owns and operates a portfolio of real estate. It allows you, as an investor, to own any type of property without physically owning it.
These companies distribute 90% of their pretax income back to the shareholders in the form of dividends. This is great because it allows you to easily get started with real estate investing without having to pay $30,000 for a downpayment on a single property.
Essentially, these real estate trusts collect rent from their tenants every month and distribute 90% back to their investors. This means you get to collect rent in the form of dividends without having to deal with issues like water leaks, tenant problems, noise, background checks, and much more. It is hassle-free!
If you want to learn more about how to get started, you can read my guide on REIT investing.
Conclusion
The convenient thing about these 3 methods is that all you need to get started is a stock brokerage or crypto exchange platform to get started. It is that simple. Check out Robinhood, M1 Finance, or Coinbase to get started today.
Have a great week!
Muhamed
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Anything You Want - Derek Sivers
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The only thing that overcomes hard luck is hard work - Harry Golden