Everyone wants to generate additional income from their savings without having to lift a finger, so they can support their daily work, or gain more freedom to focus on family, travel or other personal activities.
There are many ways to generate Crypto Genius passive returns, although some are more profitable than others and involve different levels of risk.
Common forms of passive investment include buying property that provides rental income, interest on assets such as stocks and bonds, or trading and other business opportunities that do not require personal intervention.
Let’s start with an in-depth examination of the rental activities. The positive side is that the real estate market can offer generous returns of about 12% per year. However, the real estate market is not very liquid and you may have to wait until the market is mature to sell for a profit. To enter the market you need a large amount of capital and then you need to find additional funds for taxes, intermediaries such as mortgage brokers and lawyers, property maintenance and other expenses. Then, of course, there are the risks associated with renting, such as periods when no one can be found to rent the property, or tenants causing damage that they cannot pay or do not pay the rent on time.
Alternatively, the actions can yield about 10% per year of passive income. However, there is always the risk that the company will undergo a change in fate, drastically reducing the value of the investment in a very short period of time. Moreover, in this case, the difficulty lies in knowing what shares to buy and a certain degree of effort will be involved initially in the search for various companies.
A better option could be to split the shares, which have a greater ability to withstand the upheavals of the market. A dividend is a profit distribution sent quarterly or annually to shareholders. Once the initial investment has been made, by purchasing the shares, nothing more is required and returns can reach a respectable 6-7%. Be aware, however, that a slowdown in the economy can lead to an interruption in the distribution of dividends.
Another way to go is that of bonds. These are long-term investments that take years to mature and the interest rate rarely exceeds 5% or 6%. Government bonds are backed by the government, which makes them incredibly low risk, while corporate bonds are another story and could lead to the loss of your capital. Of course, there are always Exchange Traded Funds (ETFs), which offer the opportunity to diversify, minimizing your exposure so that a single security cannot damage your profits.
Of course, there are traditional financial institutions that offer exceptionally high levels of security, but unfortunately they provide negligible returns, on average only 1% per year. Then of course there are online banks and DeFi platforms, with interest rates 10 times higher. Decentralized finance (DeFi) applications enable a wide range of financial activities and offer high returns of about 10%-12% on fiat and cryptocurrency. Money transfers are fast and convenient. However, interest rates can fall if the economy weakens to levels that do not compete with inflation. There is also the risk of hacker attacks, which exploit the security holes in smart contracts, as well as the risk of losing a private key or an address typing error, which can lead to the loss of your funds forever. Furthermore, the regulatory status of DeFi applications is still pending, as it is an emerging asset class without a definitive tax classification.