10 Passive income ideas you can use to build wealth in 2022
What if you could literally make money while you sleep? Creating one or more passive income sources can make this dream a reality. The ultimate goal is to get as much cash flow without having to deliver goods or services for every dollar you make actively.
Ten ways to make passive income:
Passive income is a smart way to ensure that you always have money coming your way, even if you’re not actively doing something to earn it. Put simply, you bundle your labor and do the work upfront. Then, you don’t have to put in the labor anymore, but you will get paid for the labor you’ve already done in these small streams of income over time.
If you’re looking for the best ways to make passive income in 2022, you’ve come to the right place.
Here are ten ways you can start to make passive income:
- Automated trading
We’ve all heard that investing is a great way to create passive income. However, trading can be quite daunting. Especially if you’re new to the field. This is something BOTS - an automated trading app tries to fix.
With automated trading, you don't have to put in the time and energy to choose investments yourself. Instead, bots or trained algorithms do this for you. You can choose bots according to the risk that you’re comfortable with. This is one way for you to start making passive income.
Did you know that bots are actually better at trading than even the best human traders out there?
The BOTS algorithms can perform thousands of complex calculations in seconds, which allows them to make quick trading decisions. Our bots are programmed to get you the most profits. And the best part? You can start investing from as low as €5.
- Crypto staking
Have you ever wondered how to make passive income with crypto? One way to do this is by crypto staking. This basically means that you earn rewards for holding certain cryptocurrencies. Some cryptocurrencies, such as Ethereum and Cardano, offer the option to stake part of your holdings. They benefit from you doing this because if you stake your crypto, you contribute to the Proof of Stake process on the blockchain. In return, you earn a set amount of interest over time.
Recommended: What is crypto staking?
A great way to start crypto staking is with our Stake & Make 9% bot.
This bot stakes your funds in USDC and other leasing crypto assets. The goal is to provide a stable profit for you that adds up to a total of 9% annually. You get your rewards paid out every week. Compared to other forms of creating passive income, a 9% return on investment is a good deal.
- High-yield savings account
A high-yield savings account is a form of federally insured savings account. The interest rate of these high-yield savings accounts is usually, you guessed it, much higher than those of average savings accounts. There are a bunch of different high-yield savings accounts out there, and the amount of interest they pay out differs. Although this difference may seem small, due to compound interest, it can add up to a big difference in cash over the years. So be sure to look around and find the one that works for you.
One more reason for you to fund the Stake & Make 9%
Yes, you can create passive income with a high-yield savings account. But when you compare the 3,16%, which is on the high-end APY for a high-yield savings account, to the 9% annual reward you could get with our Stake & Make 9% bot - the choice is simple! Get the BOTS app.
Bonds are essentially loans you lend to either a company or a government. In this scenario, a company or a government borrows money from you. Next, they will pay you a coupon rate of a certain percentage of interest every year. And at the end of the bond, after an agreed-upon amount of time, they will pay you back your initial investment.
What makes bonds an attractive investment is that they’re relatively low-risk, especially compared to investing in stocks (more on that later on!). Of course, low risk also means that the rewards are generally not as high as when you would invest in high-risk stocks.
Recommended: How to invest in bonds?
- Sell digital products
Selling digital products is an amazing idea for passive income in 2022. The beauty of this concept is that the products you create can sell 24 hours a day, 365 days a year. While you only need to make the product once. Imagine that you create a PDF file once and then can sell digital copies of it for the years to come. Granted, it will probably take you many hours to create the initial product. This is the investment of your time and energy you make upfront. But once you’ve created the product, you don’t have to do that much.
What kind of digital products can generate passive income? Think of creating an online course about something that you’re already knowledgeable about. Write an e-book on something you know a lot about or create digital art. The possibilities are endless. Because you sell your product online, you’re not bound to a location and the entire world is your audience.
- Invest in real-estate
Investing in real estate can definitely create a steady flow of passive income for you. The obvious way to do this is to purchase a property and rent it out. This way, you invest in the property one time and then collect a steady income every single month. But even though this is a form of passive income, you do have to take into account that being a landlord comes with responsibilities that you either have to do yourself or hire someone to do, which will take up either your time or your finances.
Another way to create passive income with real estate, if you don’t have the finances to buy the property or if you can’t be bothered with all the hassle, is to invest in real estate investment trusts (REITs). These are companies that possess commercial real estate. Think apartments, hotels, office buildings, et cetera. You can invest in different types of REITs. Usually, they are expected to generate high dividends.
If you’re unsure of investing too much in real estate, you should definitely check out our Unreal Estate bot.
It’s the ‘first of its kind’ bot combining crypto trading and the real estate market! This bot trades BUSD, and with this bot, you stand to earn 6% returns annually.
- Dividend stocks
One of the most common ways to create passive income is to invest in dividend stocks. A dividend is a payment that you, as an investor who owns a company’s stock, receive regularly. Companies pay out dividends to their stockholders. This is a way for you as a stockholder to make passive income in return for investing in a stock. However, not all stocks will pay dividends. If you are interested in investing in dividends, seek out dividend stocks specifically. These stocks are typically lower-risk than investing in growth stocks.
- Peer-to-peer lending
Another way you can create passive income is to become a peer-to-peer lender. You see, it’s not just banks that offer loans to companies and individuals. Peer-to-peer lenders can offer loans as well. These lenders match you, as the investor, to a borrower who borrows a sum of money from you. The lender will check the borrower for creditworthiness. This form of investing is higher in risk than investing in bonds or a high-yield savings account, but the interest rate is also usually higher. It could be up to 5% or more.
- Invest in dividend index funds
Let’s say you want to invest in dividend stocks, but you don’t feel like doing all the work figuring out which are the best stocks to invest in. It can be tricky to pick and choose individual stocks to purchase. An alternative is to choose an index fund. When you invest in an index fund, you actually invest in a selection of multiple stocks that are bundled up in a single package for you. A great example of this is the S&P 500. A great benefit of investing in index funds is that you balance your portfolio, which makes your investment less susceptible to changes in the market as compared to individual stocks.
- Affiliate Marketing
Lastly, a great way to create passive income in 2022 is to create a very niched form of affiliate marketing. This means that you sell leads for service-based businesses. You can get very creative with this process. Seek out local businesses, such as solar companies, landscaping businesses, accounting, et cetera. These businesses need more leads. You can create content on a website that attracts people seeking information on these services.
For example, you make a website about solar energy. You give out free information to readers about solar panels, how you install them, et cetera. People who land on this website are generally people who are in the process of purchasing solar panels. These are the perfect people to refer to a few partners in this industry. You can charge the companies a set amount of money for a referral.
This blog is for educational purposes only. The information we offer does not constitute investment advice. Please always do your own research before investing. Any views expressed in this blog and by BOTS do not constitute a recommendation that any particular cryptocurrency (or cryptocurrency token/asset/index), portfolio of cryptocurrencies, transaction, or investment strategy is suitable for any specific person.