4 Passive Income Ideas in 2024
1. Real Estate
Real estate is often seen as the holy grail of passive income, but there are a few things to consider. First, real estate isn’t truly passive. You have to manage properties and tenants, and if you're not lucky, it could turn into a lot of work. Second, real estate requires significant starting capital.
One solution I like is tokenized real estate through Realt.co, where you can invest as little as $50 and earn around 9.5% APY with rent paid weekly—without much effort.
2. High-Yield Savings Account (HYSA)
A high-yield savings account (HYSA) is one of the safest ways to earn passive income, though the rates are generally lower compared to other options. You can typically expect around 5% APY.
Personally, this accounts for about 40% of my portfolio. It's low-risk, and I put all my savings—those I know I won’t need for a while—into an account offering 4.85% APY.
3. Cryptocurrency Staking
Cryptocurrencies, in my opinion, will be this decade’s way to achieve significant ROI. The downside is their volatility. For instance, my crypto portfolio once lost 30% of its value in one week, only to gain 40% the next.
If you can’t handle that level of risk, stablecoins might be a better option for you. Stablecoins are cryptocurrencies pegged to real-world currencies. The leading ones are USDT (Tether) and USDC (by Coinbase).
Personally, I use Nexo, where I earn 9% APY on stablecoins and native tokens stacking where I from 7% APY to 16% APY.
For beginners, I recommend Nexo. It functions similarly to a savings account but with the added benefit of earning passive income on cryptocurrencies.
Read my nexo review or join now and get up to $35 worth in bitcoin
4. Stock Market
The stock market plays a significant role in my investing portfolio. For me, it’s the best way to generate passive income because it strikes a balance between all the other methods mentioned above.
The S&P 500 is incredibly strong. While it can have downturns, historically it has averaged a 10% return per year since its inception.