4 of the Best Passive Income Investments

Today we are covering four of the best passive income investments you can make starting right now. These investment strategies for making income passively can excel your financial independence faster.

In this strategy guide, we are going to be covering four separate divisions in the passive income space. Staking, real estate, lending, and dividend paying stocks.

Leaders of the Best Passive Income


Staking crypto is the process of actively participating in transaction validation and is similar to mining on a proof-of-stake (PoS for short) blockchain. Learn more about staking crypto for passive income.

Examples of projects that offers staking rewards include Ethereum, Cardano, Polkadot, Cosmos, Solana, Tezos, Algorand, Kava, Kusama, and many more.

Real Estate

When it comes to passive income, the old school king has always been real estate ownership. However in the past that ownership did not come with a completely “hand-off” approach for the owner/investor. Learn more about passive income in real estate in our Fundrise review.

But welcome to modern times where technology is leading the new industrial revolution. It’s the mix of tech and real estate investing as hit with mainstream ease in the form of a company called Fundrise.

A Fundrise investment is easily part of a passive income strategy that can have you owning real estate. Yes, really owning real estate, yet you are doing so without the day-to-day involvement of direct ownership.


Lending crypto for passive income is the process of loaning your crypto out to third-parties. Because, these are typically market makers that use your crypto for personal gain. Learn more about crypto lending in our Ledn review.

There is risk associated with lending, where that risk is mostly if the third-party is successful in their market making techniques. If they are not, you may not get paid back. The benefit to you is getting paid a yield for the risk.

Examples of companies who offer yield in exchange for your loaned crypto included BlockFi, Ledn, Gemini Earn, Celsius Network, Nexo, Voyager, and several more. New lending partners are coming to market each year.

Dividend Stocks

Dividend stocks, in general, belong to older and more established companies. Companies that are past their growth stage and are less volatile in the overall market. You’ll find such companies in Telecoms, Utilities, and financial sectors fall within dividend paying stock performers.

The S&P 500 dividend yield is about 1.6% as of 2021. Take a look at these 3 dividend paying stocks that can earn you monthly income.

Growth stocks from tech related and bio/pharm companies generally reinvest most of their earnings back into their company for more growth, so they don’t pay dividends.

Dividend stocks mostly work like this: If you want about $20,000 in annual passive income with a ~1.5% S&P yield, you would require $1,334,000.  Some popular dividend stocks investors purchase are SPLV, SPHD, HDV, SCHD, VYM, and NOBL.

The Best Passive Income Strategy Summary

Earning the best passive income comes with a bit of research and due-diligence. Do your own investigating and pick one (or more) of the four strategies above and put them to work for you today.

In summary, the best things you can do is to diversify and take advantage of all passive income strategies to balance your risk and seek the best returns for your money.

4 of the Best Passive Income Sources

4 of the Best Passive Income Investments
4 of the Best Passive Income Sources
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