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Get to know Passive Income: The Concept and Its Benefits

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Get to know Passive Income: The Concept and Its Benefits

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In financial planning, passive income is an important thing to have. Passive income is one of the keys to achieving long-term financial stability and freedom.

The term passive income has been heard recently, especially among investors, including millennials. Young people are starting to compete to build passive income that can generate money.

Passive income means passive income. That means this income is obtained passively (not being physically active / participating directly in an activity). With passive income, we can generate income without exchanging energy properly when working.

The source of passive income can come from various assets, for example, investment, real estate, royalties from copyrights, businesses run by other parties, or even from affiliate programs on the internet.

Therefore, passive income offers an interesting opportunity because you don’t have to actively trade, spend time, and expend energy to earn money.

So, to understand passive income, its benefits, examples, and how to get it, see the full review below.

What is Passive Income?

In general, passive income is defined as side income/income earned without needing an active role in an activity. Passive income will continue flowing with little effort after your system or investment runs.

Of course, it gives you more free time and flexibility to pursue personal interests, be with your family, or even expand other passive income sources.

Meanwhile, passive income in the crypto world is earned from investing/participating in digital assets/blockchain-based projects without being actively involved in their daily operations. Please note, in the crypto market, there are many ways to generate passive income, including staking, master nodes, yield Farming, and airdrops.

Passive Income Benefits

After understanding the meaning of passive income in general and in the context of the crypto world, it is important to know the benefits of passive income. The reason is passive income is very important for financial planning and achieving financial freedom (financial freedom).

The following are some of the benefits of passive income that you need to know, including:

1. Financial gain and have clear financial goals

The first benefit is getting financial benefits and having clear financial goals. Of course, financial goals can be achieved when we have more income.

Therefore, with passive income, later, we will be helped in determining financial goals more carefully and quickly.

2. Financial conditions can be more stable

Another benefit is that it makes financial conditions more stable. To achieve financial freedom, it is very important to have financial stability first. If we reach that point later, we can be confident in achieving more precise financial goals. In this case, one way to do this is to earn passive income.

3. Do not depend on one source of income

Finally, passive income can also make us not depend on just one source of income. If income comes from multiple sources, we will likely find it difficult to meet increasing needs while prices are soaring. Therefore, with passive income, income will make it easier for us to meet our daily needs.

Passive Income Examples

Already know what the benefits of passive income are. Now, it’s time to find out examples of passive income. The examples are important because they will provide an overview of the various ways to generate side income.

Here are several examples of passive income in general and also in the crypto world that you need to know, including:

1. Affiliate marketing programs

For information, the affiliate program is quite popular today to earn passive income. The method is registering with a company that provides opportunities to promote/sell products.

Please note affiliate business is a form of cooperation between individuals and a company to obtain large profits through marketing strategies. The mechanism is to add links/promotions on social media/personal websites.

2. Rent property

Renting a property can also generate passive income. Properties that can be rented include houses, shophouses, apartment units, and other types of buildings. That monthly/yearly rent money can later become income side.

3. Dropshipping business

An example, as well as another way, is the dropshipping business. This method was even easier and would not interfere with one’s profession. The mechanism is to find a supplier for a product/goods on the internet; then, the product is resold online without having to provide a stock of the goods first or without any capital.

4. Staking

The first example of passive income in crypto is staking. Crypto staking is when an investor saves the crypto assets in a digital wallet (e-wallet). The concept of staking is similar to a deposit because the investor’s assets will be locked for a certain period. Later, from this staking activity, investors will get returns from interest on the nominal assets they lock daily.

5. Masternodes

Another example is a master node, a computer that runs special software on a blockchain network that aims to help validate transactions and maintain network security. Later, in return, the master node owner will receive a portion of the block/transaction fee reward from the network as passive income.

6. Yield Farming

Another example of passive income from the crypto world is yield farming, a strategy in the Decentralized Finance (DeFi) ecosystem by utilizing tokens/cryptocurrencies to obtain yields/returns on several platforms and protocols.

Those who do yield Farming—”yield farmers”—lock their coins as collateral (staking)/provide liquidity in exchange pools, allowing them to receive rewards in the form of new tokens/returns in the form of interest on their deposits.

7. Airdrops

The last example from the crypto world is an airdrop when a blockchain project/platform distributes several tokens/crypto for free to certain coin holders/participants as a gift/incentive. Later, airdrop recipients can keep the tokens and expect their value to increase in the future. They can also trade/sell it to get passive income.

How to Get Passive Income?

After knowing the examples, you are interested in getting passive income. By knowing how to get them, you can create additional sources of income in your quest for financial freedom.

Here are some ways to get passive income that you need to know, including:

1. Utilize the internet to find additional information

The first way to get passive income is to use the internet to find additional information. Information that can be searched for, for example, related to investment, online business, or ways to earn passive income online.

For information, many platforms or websites currently open opportunities for anyone to take part in affiliate programs, online surveys, and even write content to earn passive income.

2. Maximizing time outside working hours

If all this time you have never used your free time outside of work hours, you can start maximizing it to get passive income. For example, if you have certain skills/hobbies, you can consider selling products/services online.

In addition, for those interested in investing, you can maximize your free time outside of work to learn more about financial markets and find investment opportunities that suit you.

3. Invest to find passive income

Finally, you can also invest to find passive income on this list. Investing is the most common way to get passive income that you can consider. You can also invest in several financial instruments, from stocks, bonds, mutual funds, and property to crypto investments.

Are You Interested in Staking Crypto and Earning Passive Income?

As discussed earlier, staking is one of the popular ways to get passive income in the crypto world. In addition, staking also aims to support network security and reduce volatility in crypto assets.

When staking, you lock up a certain amount of crypto in your wallet to support network operations. In return, you will receive a reward of additional crypto as a form of appreciation for your contribution.

Staking is now one of the superior features you can find in the best crypto trading application, INDODAX. You can lock up your crypto assets in the INDODAX Earn/staking crypto feature, like saving funds in a deposit.

Later, the crypto assets locked in INDODAX Earn will provide rewards, like interest on savings. The INDODAX Earn/staking crypto feature can also be easily accessed anytime and anywhere via the Mobile App or desktop on the INDODAX website, namely on the INDODAX Earn/staking crypto page.


In conclusion, the benefits of passive income include:

  1. Financial benefits & having clear financial goals.
  2. Financial conditions can be more stable.
  3. Not depending on one source of income.

As mentioned above, the potential for passive income in crypto is very interesting and diverse. Several ways to create passive income in crypto include (1) staking, (2) master nodes, (3) yield Farming, and (4) airdrops.

Again, It must be understood that it is very important to do research and consideration before investing in a crypto project. This is because the crypto market is very dynamic and high-risk, so it is important to take careful steps before investing in digital assets.

Furthermore, it is also important to understand the risks and constantly learn about the dynamic crypto market before jumping into it. By understanding the risks and continuing to increase your knowledge of the crypto market, you can make the right investment decisions and reduce potential losses.

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