Remember those advertisements and stories about people sitting on massive revenue streams and paying off their mortgages with passive incomes! Well, they are true! It is entirely possible to make a steady – and excellent – income with trading or similar activities. You can, literally, earn money while you sleep and achieve financial freedom.
Passive income streams are earnings that come from business ventures which don’t require you to put in constant effort or attention. Very little time is needed to set up and maintain these; however, the revenue is regular. For many people, these take the shape of side hustles (blogging, affiliate marketing, etc.) or investments such as in real estate, trading, and more.
Trading is a tested method for earning passive income and has been used for generations as a comfortable revenue stream. Like all other forms of money-making, the best results in trading go to those who put in the most effort to gain knowledge and then back it with significant capital.
which refers to short duration (days or weeks) strategies in the stock market or futures market, requires constant monitoring and action from investors but can turn smaller investments into a high monthly passive income.
In Long term trading the buying selling durations stretch over months or years; however, it is more stable and requires far less effort. You do need to study stocks and market trends, but it is relatively calmer and less risky.
NFTs or non-fungible tokens have recently taken over conversations across the globe. Used mainly in the artistic collector sphere, NFTs are like a digital certificate that guarantees ownership of a unique asset such as a graphic or a piece of music.
To invest in an NFT, you would need to purchase it on an NFT marketplace either for a fixed price or by bidding in a virtual auction.
While the NFT market is booming currently and provides an excellent avenue for artists to showcase and sell their work, they are a speculative investment and is usually dependent on buyer demand. However, if you have a good eye for art and know the trends in the sector, then this could be an excellent way to become a digital collector.
Our View: As a new area, NFT trading has massive space for growth. If you pick your art and items cautiously and you could actually be sitting on a valuable portfolio a few years from now.
A great way to build a steady passive income and make more money is by rotating your existing crypto coin assets in the market to gain profits. You can either do straightforward trading in the crypto market or generate an income by other means such as:
You can use your crypto coins in the Proof-of-Stake model to generate passive income. If your crypto coin operates on proof-of-stake, then you can stake the coins to validate transactions in your network. In exchange, you will get additional coins.
Here, we must mention CoinsLoot, which ties the mystery box gameplay with crypto investing and staking option. The App offers Loot tokens or other options to Ethereum users in exchange for other crypto coins. Your investment can unlock a Loot box or games, vouchers, etc., which allow investors to earn more money based on revenue of the DEFI platform connected to the entire ecosystem.
You can lend your crypto coins in a traditional manner to earn money. Many platforms like BlockFi, Gemini or Celsius or DeFi apps like Compound or Aave work as marketplaces; you can deposit your crypto here and get a fixed interest rate – just like a high yield bank account. In some cases, you can easily get interest rates of 8% or more.
The constant wild swings in the cryptocurrency market can also be used by smart traders to earn money by riding market trends. Each small volatility can be used to buy low and sell high. To completely automate the system, there are even plenty of crypto trading bots that can literally earn you money while you sleep.
Our view: Crypto investing is a MUST! It is the future of money, and getting in today is profitable both now and in the long run.
The stock market is a time tested source of passive income. Instead of trading constantly, you can park your money in high value, high yield stocks and generate revenue from their dividends.
One of the most expensive but sureshot profitable investments is in real estate. Barring a few slumps, land and housing prices have ALWAYS increased. However, entry point investment is really, really high, and while you would turn a tidy profit in the long run, real estate is not the fastest asset to liquidize or sell.
Our View: Private as well as commercial real estate is a life time investment for most of us. We wouldn’t really term it an income – unless you are renting your property.
P2P lending connects people with money to people in need of credit. You can use your extra cash to earn higher returns from your investments in the form of EMIs. You can do this through P2P lending platforms that run a marketplace connecting lenders with borrowers and builds in a layer of safety by working on scale and collecting the EMIs on behalf of the lender.
P2P lending is largely unregulated, and to ensure you reduce your risk while earning high returns; you need to build a diversified portfolio. It could be tricky for amateur lenders to earn money passively with P2P.
Our View: Working via a well-respected P2P lending platform is the best way forward as it cuts out all effort and gives you an element of safety. However, the income is dependent on how much money you want to open for lending. Small investments might not reel in decent profits.
The digital economy has created a whole section on online revenue generation streams that can be leveraged by users to create profitable businesses with minimal effort. Some of the most tried and tested methods are blogging, affiliate marketing, stock photography, running a YouTube channel or creating and teaching online courses.
Initially, all these methods require considerable effort and time investment; however, once established, they can churn out a tidy sum each month. Businesses such as blogging or content creation need continuous engagement, but offering a digital course or working in stock photography is pretty much on autopilot once established.
Our View: Making money online isn’t easy; one needs to put in a lot of time and effort to build the business to a point where it is self-sustaining. Also, online companies require some talent and a passion to translate into authentic content; it is almost impossible to get users interested.
There are many ways to make money while you sleep; however, not all of them will suit your personality or your bank balance. We suggest that you research ideas in an area that interests you and take it from there! In the end, we leave you with this quote from the master of passive income, Mr Warren Buffett himself!
“If you don’t find a way to make money while you sleep, you will work until you die.”
Investing in quick return areas or formats is a great way of making money while you sleep. The cryptocurrency market is definitely on top of our list as its growth potential is so much more than mature trading areas.
Automating your income generation streams is the only way of making money 24x7. You could do this by using crypto trading bots or by selling online classes, or by investing in high yield stocks that provide value continuously.
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