The Dream
For many, the idea of earning a passive income is the ultimate dream. Some actually work towards it, while others simply gaze at the idea in the hope that "one day" they will also be able to enjoy the rewards of a passive income. A lot of people seem to refer to passive income in a way that I find rather disturbing. I think the idea that they do not have to be at work, or employed by an employer somehow suggests that anything outside of this realm is actually passive income. This type of income may be considered easy income, or even effortless but it is definitely not passive.
There is only one way to truly define if an avenue of income is passive or not and that would be to do nothing! In other words, don't login for a month! Do absolutely nothing and then return to see which mechanisms have actually made you any money. The ones that have actually produced income are indeed passive income sources. Earning BCH on Noise.cash is indeed easy but it is definitely not passive income. On the other hand earning BCH on Celsius, based on your deposit amount is!
I find that many people consider easily earned income passive, when in fact it is not. There is however the approach of working towards creating passive income and that is where the two ideas can form a marriage towards a common goal.
Effortless Income Marries Passive Income
Unless you are enormously wealthy, the only way that you are going to build a passive income is by working towards it over time. A super wealthy individual can simply take a large amount of capital and split it between BlockFi, Celsius and Nexo. He can then simply just cash out his earnings every month as a significant salary. However, not everyone is in such a fortunate position, which leaves the alternative. Finding money to invest can be a rather difficult task in the current economic climate, no matter where you are in the world. This is exactly why people have turned to Crypto earning opportunities. Many use these earnings to invest into opportunities that have a passive dynamic. This is how many individuals started building their passive income portfolio, including myself.
In my recent article, I explained how an opportunity such as Cointiply allows users to utilize it as a passive income source, or as an easy earning opportunity to gain BTC. In other words, you can earn 5% interest on your main balance, provided it exceeds $3.50. You can also earn BTC by utilizing the faucet, offerwalls, surveys and videos. Cointiply is a hybrid earning opportunity, providing 100% passive income, as well as easily earned income. This creates a compounding effect, no matter how you may choose to use it.
Once you begin building passive income streams you will begin to realize that compounding is a very key proponent to the model. Not incorporating a compounding strategy will ultimately set you back, causing you to reach your goals a lot later down the line. The fact remains, that if you are still having to do work on something then it is not passive at all. Yes, the proceeds can be utilized to invest in a passive opportunity. However, don't confuse the two but rather use the one to feed the other.
A lot of users on Noise.cash have set their wallet to their Celsius wallet address and are earning passive income on their earned income. As their desired payment threshold is reached, the payment is instantly sent to their Celsius wallet, which in turn earns them interest. This interest is paid out weekly and serves as great example of how easily earned income can be used to earn passive income. Having multiple passive mechanisms is really a key objective, as sometimes your time may become constrained, subsequently limiting your ability to earn. With passive mechanisms at work you are always earning, regardless of any situation or restriction.
It is important to ensure that you do however have some passive mechanisms, even if only a few, as this will assist and strengthen your earning potential. Please DYOR when it comes to selecting platforms and projects. Nothing here is investment advice and should never be interpreted as such. See you in the next one!
