Passive income is like having a magical unicorn that just gives you money because he likes you.
I think it's easier to define passive income by what it's not than by what it is.
Passive income is not:
- Trading your time for money.
- Get rich quick schemes.
- Relying on a salary, hourly pay, or one time commissions.
In essence, passive income is receiving money for investments or work that you did in the past. The classic is example is album sales for musicians; every time an album was sold the musician would receive a small commission. The album could have been created 50 years ago but as long as there are sales the musician will receive a paycheck; the musician is continually making money for work he did a long time ago.
Cryptocurrency and Passive Income
I am a big fan of cryptocurrency and I think it's one of the best way to earn passive income. Here are four ways to earn passive income using cryptocurrency. If you want to learn more about cryptocurrency I highly recommend that you follow my Quora Space: The Crypto Cave.
With BlockFi you can earn between 3–8 APY per year depending on the cryptocurrency that you stake on the site. For instance, if you stake Bitcoin you will gain 6% APY. So for every 1,000 USD you put on the site, you will gain about 60 USD per year in compounding interest. Keep in mind, BlockFi will not pay you in USD but instead will provide you with the cryptocurrency you stake on their platform. If you believe that Bitcoin or another cryptocurrency will gain value this is an excellent way to capitalize on your crypto.
This altcoin is dedicated to making cryptocurrency easy to use and is making a cryptocurrency-meets Venmo Wallet. With Divi, you will be able to send US Dollars, Bitcoin, or their native Divi coins. Most of all they have set up one-click masternodes that allow users to make passive income for securing the network. Most Divi Masternode holders make between 18–27% APY. This means at the current rate you could easily make between 600 and 60,000 USD depending on how large your investment is and the ever-changing price of Divi.
This is more of a rewards program than passive income but you can easily receive Bitcoin for buying things you would anyway. For instance, if you buy a Udemy class you will receive 13.5% back in Bitcoin. In other words, you earn money on Lolli for nothing but buying things. It may be more of a discount system than passive income but you will still be more wealthy using Lolli than not using it.
This is an opportunity that crypto fans should not pas sup because it's free. You don't need to spend any money all you have to do is download the app and mine some Pi. It's being developed by some Stanford graduates and already has 8 million users. Pi is not currently tradeable on an exchange but rest assured it will be soon. Don't forget to grab some pi!
I hope you find the four ways passive income ideas helpful. Most of all keep stacking Bitcoin!