The primary objective while investing your money in the market would be to see a growth in your net worth. Investing in numerous investment niches and types is one approach to diversify your portfolio. Ideally, you’ll be able to sleep soundly at night, knowing that your investment decisions are generating additional capital for you. Design your portfolio in a way that creates passive income (if you want to do so) and let your money work for you.
However, in an uncertain economy, establishing a passive income source might be challenging. Due to the wide swings that can develop in any form of investment, you must establish a reliable source of income. To build a successful passive income strategy, you must first define what it means to be passively wealthy.
Passive income is money earned by your investments without your intervention. This might include revenue from a rental property, evergreen automated sales for a business, dividends from stock investments, or any other kind of income.
Another form of passive income is the interest you get on your bank deposits and, more lately, your cryptocurrency assets. Essentially, any investment that earns money on its own is considered passive.
Historically, the only way to profit from digital assets was to buy low and sell high, but that is no longer the case. Several platforms now even pay interest on your cryptocurrency holdings, and that is only the tip of the iceberg. The best part is that you don’t have to sell anything to grow your assets. All of this is made possible by the constantly innovating crypto sector.