Earn Passive Income with Freename
We are living in times of economic uncertainty. Macro sentiments about the future only lead to one thing – inflation. It is not a surprise that one of the top-asked questions on Google is “How can I earn passive income online?”. Web 3 firms like Freename.io are building many solutions to help empower people and their incomes. Let’s discover some passive income strategies.
Is passive income better than active income?
Active income is directly related to the hours of work you put in. Passive income is not. Working a traditional job is a great example of active income as you get paid by the hours worked. Your time is money. Leaving your job means leaving your income. The concept of passive income is becoming quite popular as it is not necessarily tied to your hours of work.
All forms of income are essential. However, building passive income streams accelerates your goal of achieving financial independence. Let’s say you buy a property and start earning rent. You don’t have to work extra to earn rent. The rent is your passive income. Another example is creating a course online. Yes, you will have to put in the hours to create a good course. But after you publish the course, you have passive income. People will buy your course and all you have to do is focus on scaling the course.
One thing is for certain. You need passive income to “earn while you sleep”. You are most likely asking yourself “how can I earn passive income online”. This blog will show you traditional ways and easier ways to generate.
Traditional ways to earn passive income
Let’s look at some traditional ways to earn passive income in Web 3.
Deposit assets in an interest-earning account
The most obvious way to generate income is to invest in cryptocurrencies and profit from the rise in price. This is more of an active income strategy. There is a way to make it passive. Certain centralized exchanges and protocols offer you interest on your assets. You are putting your money to work. Binance offers 5% APR if you deposit your BTC. This is a popular way to generate passive income
Pros: Truly passive.
Cons: Lock-up period. You have to wait till the end of the lock-up period to withdraw.
Staking your cryptocurrency tokens help sustain a network. Locking up your tokens for certain periods of time leads to you getting paid rewards or earning interest. How is this different from the previous strategy? You stake tokens to waive your right to sell them. This is so you can participate in the blockchain transaction verification. So you are investing and locking up your tokens to start working with the protocol. You are getting paid to help the network and you are doing so without putting in the hours. Here is a database of protocols that let you stake.
Pros: higher interest than the previous strategy.
Cons: Prices may be more volatile on assets not as stable as blue-chip protocols. Each protocol has its own rules and regulations on lock-up periods.
There are many platforms that allow you to purchase shares in different Web 3 firms and traditional stocks. Automated investing platforms can help make this more passive. If you have a good insight with macro insights and the Web 3 industry, this is a great option.
Pros: You decide what protocols to invest in.
Cons: You may opt-out of automated investment to have more of a say. Then it becomes less passive. You will have to speculate and put in the work as it is advised to keep up to date with the industry to protect your investments.
Easier ways to earn passive income
This is when you predict and invest in domains that you believe will be valuable in the future.. You buy the domain once, and sell it when the right time comes. A valuable strategy to implement is the ‘.com 4L’ where you buy 4 letter domains like DELL, EBAY, KPMG, etc. While Web 2 domains are already taken, buying on Web 3 registrars like unstoppable domains can give you the edge, if they decide to expand into Web 3.
Web 3 firms like Freename.io are pushing to empower their users. Unlike other Web 3 registrars, Freename.io helps you to mint a TLD and earn royalties from it. The goal is to buy something that can be popular, like “.metaverse”. Future firms are likely to buy a domain on this TLD. If they do, you earn 50% of the transaction because of Freename’s Royalty License (embedded in their smart contract).
At the end of the day, creating passive income takes time to create. Going with easier passive income strategies can help if you don’t have much time on your hands. You can also still domain flip on TLD providers like Freename.io. This paired with royalties from TLDs can evolve into a great passive income stream. It’s all about picking your passive income stream and getting to work.