Creating passive income is a strategy where you regularly receive money without active daily involvement. Here are the main methods with varying levels of starting capital and risk:
1. Investing in cryptocurrencies (high risk / high return)
Options:
- Staking – earning interest for locking coins (for example, Solana, Ethereum, Cardano).
- Example: SOL can be staked with a return of 5–7% per annum.
- Where: Binance
- Delegated staking (DeFi) – income up to 10–20% in protocols like Lido, Marinade Finance.
- Lending (crediting) – lending crypto for interest (Aave, Compound).
- Nodes and validation – running a node (requires technical knowledge).
Pros:
✅ High yield.
✅ Potential for price growth.
Cons:
❌ Volatility (risk of price drop).
❌ Smart-contract risks (in DeFi).
2. Investing in stocks and ETFs (moderate risk)
Options:
- Dividend stocks – companies that pay dividends (3–6% per annum).
- Example: Coca-Cola, Procter & Gamble.
- Dividend ETFs – for example, SCHD (yield ~3.5%).
- REPO and bonds – stable income (~4–7% per year).
Pros:
✅ Stability (if choosing blue chips).
✅ Liquidity (can sell quickly).
Cons:
❌ Low yield compared to crypto.
❌ Dependence on the economy.
3. Real estate (low liquidity / medium risk)
Options:
- Rental housing – renting out an apartment/house (yield 5–10% per annum).
- REITs (real estate investment trusts) – investments without buying the property itself (yield 6–12%).
- Short-term rentals (Airbnb) – higher profits, but more work.
Pros:
✅ Protection against inflation.
✅ Physical asset.
### Cons:
❌ High entry threshold.
❌ Problems with tenants.
4. Creating digital assets (requires initial effort)
Options:
- YouTube channel / blog – monetization through ads and partnerships.
- Site with ads (AdSense) – income from traffic.
- Selling digital goods (courses, templates, NFTs).
- Affiliate programs – promoting other people's products for %.
Pros:
✅ Unlimited income potential.
✅ Global audience.
Cons:
❌ Requires time and skills.
❌ Competition.
5. Other methods
- Mutual funds and trust management – if you don't have time to figure it out yourself.
- Royalties (books, music, patents).
- Crowdlending – investing in businesses for interest.
How to start?
1. Determine budget – from $100 to $10,000+.
2. Choose a strategy – conservative (stocks, bonds) or aggressive (crypto, startups).
3. Diversify – don't put everything into one asset.
4. Automate – reinvest profits.
Example of a passive income portfolio:
- 40% – ETFs (SCHD, VOO).
- 30% – crypto staking (ETH, SOL).
- 20% – REITs or rental.
- 10% – high-risk assets (startups, DeFi).
The sooner you start, the faster the income becomes truly passive! 🚀