Thinking of Dogecoin? 4 Safer Ways to Earn True Passive Income
When you combine a button-cute dog, in this case a Shiba Inu, with a get-rich-quick scheme, you’re going to attract investors, even with a method seemingly so ridiculous that it started out as a joke. Of course I’m talking about Dogecoin, a cryptocurrency launched in 2013 to poke fun at the crypto hype. The creators of Dogecoin based this coin on a meme of a Shiba Inu dog. Largely because of the cute puppy, people thought investing in this particular cryptocurrency would be a fun and crossed-fingers way to possibly get rich.
There always have been and always will be people who like to gamble, and due to the current volatility in crypto, that is what crypto investing is all about. Investors who believe in the slow and steady approach that wins the race might want to read on for four ways that are more likely to create wealth than Dogecoin.
Rental property investment
This is my preferred method, and it has served me well. My rentals have provided me with a stable and fairly passive stream of income since I purchased my first property, a modest single-family home in a location that I believed was going to take off. And indeed, shortly after purchasing the property, Whole Foods announced that it would be anchoring a mixed-use development within walking distance of my rental. Ka-ching.
Although housing prices are at record highs right now, there are no signs of a major price drop any time soon since supply is so low. And there’s no shortage of tenants, especially if you buy in places where people want to live. You might want to put rental property investing on your radar before interest rates rise, which they are expected to do in 2022 – four times, even, says Jamie Dimon, CEO of JPMorgan Chase . By checking out a city’s development initiatives, you can find out what’s planned for an area you’re considering.
Short term rental
Investing in short-term rentals is more volatile than investing in long-term rentals, but traditionally there is potentially more revenue to be gained from short-term rentals. COVID-19, however, has turned the travel industry upside down. And he hasn’t fully recovered. We can only hope that it will return to normal one day. But until then, one wonders what the forecast for 2022 is for vacation rentals.
Vacation rentals are more profitable when the economy is strong and people have discretionary income. Many people have that income today (January 2022), but part of that is due to government stimulus payments, which are still happening but likely won’t last forever. AirDNA, a vacation property research company, predicts a mixed bag for the short-term vacation rental market in 2022. The company expects demand to grow 14.1% from 2021 levels, but it also provides for a reduction in daily rates of 4%.
real estate crowdfunding
Some investors, instead of investing in the stock market, pool their money to finance and gain access to real estate investments in the private market. This is called real estate crowdfunding. If the business is making a profit, so are you. You may have to pay an annual fee to make this type of investment, and since crowdfunded real estate platforms do not have to register with the Securities and Exchange Commission (SEC), they do not benefit from the same protections as real estate or property. real estate investment trusts (REITs) do.
Another alternative to investing in real estate or stocks is to invest in REITs, which gives you some diversification with potentially high returns and generally low risk. REITs manage income-producing real estate in a variety of sectors, such as apartment buildings, offices, healthcare and hospitals, shopping malls, warehouses, hotels, and businesses with a portfolio of single-family homes. You can invest in REITs through a brokerage.
If you feel like rolling the dice, you might want to invest some of your money in one of the many types of cryptocurrency available. But if you want more of a proven investment method, consider real estate using one (or more) of the methods listed above.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end consulting service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.