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But, in many countries across Europe for example, real estate prices are so high that with an average salary, one won’t be able to afford to buy a property to rent out.īesides investing and real estate, individuals can also start earning money by renting out spare rooms (Airbnb), cars, and other unused items. Rental property can be a great way to generate passive income. Instead of living in a flat/house yourself, you start renting it out, receiving a constant stream of income from your renters. Another thing is to use Real Estate for passive income. When investing, one buys shares, stocks, bonds and obtains passive income through their value appreciation, depending on the investment type also through dividends.īuying a house to live in is one thing. How can one make passive income traditionally?Įven before crypto, and the internet, people have found ways to make passive income. Reasons to make passive income include having a backup plan, working towards financial independence, early retirement, or just sleeping better at night knowing that one isn’t dependent on keeping one’s job. This might be a bit misleading because, in practice, to get to a point where you earn this effortlessly, you have to put some initial labor in, which then pays off over time. On the other hand, passive income is income that requires minimal labor to earn and maintain. Active because we have to do something to obtain it. When we work for a company and get paid for our efforts, that is known as active income.

Let’s start with passive income in the traditional sense. This post will cover passive income in the traditional sense and then passive income opportunities in the world of DeFi, including: There are various ways investors can earn some additional money with their capital, depending on their affinity for risk. However, DeFi isn’t all just speculation. The dream is to earn money with little effort, and a promise of quick gains indeed has been drawing in speculative investors. One of the motivations behind getting involved in crypto for many is financial wealth.