This guide to passive investments will show you how! In this article, you'll discover what passive investing really means (hint: it’s not about doing nothing), the difference between passive and active strategies, and how to get started with real estate, renewable energy, small businesses, and startups—all through crowdfunding.
Whether you're a total beginner or just curious, we’ll break it down step by step, with real examples and tips to help you grow your wealth smartly. ππ
When people hear the term “passive investing,” they often imagine something that requires zero effort—just throw your money somewhere and let it grow magically. But let’s clear that up right away:
π Passive investing is not about doing nothing.
It’s about doing the right things—once—and then letting time do the rest.
In simple terms, passive investing means that you carefully evaluate an investment opportunity, decide to go for it, and then hold onto it for the long term, all while monitoring its performance occasionally. It’s like planting a tree π³—you water it and wait. You don’t keep digging it up every week to check if it’s growing.
Think of active investing like running on a treadmill—you’re constantly buying and selling, trying to beat the market with quick moves, and reacting to every news alert or price swing. It’s high effort, potentially high reward, but also high stress and risk. πβοΈππ
Passive investing, on the other hand, is more like hiking a scenic trail. You plan your route, pack your gear, and then walk calmly toward your goal. It's steady, often lower in fees, and doesn’t demand your daily attention. You don’t need to be a financial wizard—just consistent and patient.
If you're just starting out, the best entry point into the world of investing is crowdfunding. Why? Because the barriers are low—you can start with just a few hundred euros—and you get to invest in smaller, more understandable projects. No need for deep technical or financial knowledge! π§ππ‘
Let’s explore the most popular types of passive investments you can tap into through crowdfunding.
Real estate has always been a classic investment, but with crowdfunding, it’s more accessible than ever. Thanks to platforms that pool investor money together, you can get started with small amounts and still tap into the powerful real estate market.
There are two main ways to invest here:
πΉ Lending (Crowdlending) – You lend money to real estate developers or companies, and in return, you receive interest—up to 15% annually. These projects are usually secured by real estate itself, which lowers the risk.
πΉ Shares (Equity) – You buy a share of the real estate project. If the project performs well (like a sale or rental income), you get a cut of the profits. Returns can reach 20% or more.
β³ Maturity periods for these projects are usually 3–5 years, but you can find shorter terms as well—sometimes as little as 12–18 months.
Looking for platforms to start? Visit CrowdInform.com to compare top crowdfunding platforms and find your first project!
Want to make a difference and earn money? πβ¨
Crowdfunding in renewable energy lets you fund solar, wind, and bioenergy projects. You’ll typically be lending money with returns of up to 11%, and you’ll be supporting the shift to clean energy while your investment grows.
Just like with real estate, maturities are typically around 5 years, but your money is doing powerful work in the meantime—helping the planet and powering innovation.
Want a list of the hottest renewable energy projects to invest in?
π₯ Subscribe to our CrowdInform YouTube channel where we post the best green investment opportunities regularly.
Through crowdlending, you can support small and medium-sized businesses (SMEs). These companies often need financing to expand, launch new products, or hire more people—and your investment helps make that happen.
Here’s the best part: you can earn returns of up to 20%! π€
These loans typically last around 3–5 years, giving you a stable timeline to plan your cash flow.
You’re not just earning here—you’re empowering local businesses and contributing to real economic growth. π
Feeling adventurous? π’
Equity crowdfunding gives you the chance to invest in startups—the next big thing. Think of it as becoming a mini-venture capitalist. You get shares in young, fast-growing companies.
Now, here’s the thrill: if one of those startups takes off, your investment could grow 50x or more! π₯
But be warned—it’s high risk. Many startups fail, and it may take years before you see returns (if any). But if you’re okay with the wait and the risk, this could be the jackpot of your portfolio.
Want help finding the most promising startups?
π¬ Check out the CrowdInform YouTube channel — every two weeks, we publish a list of top startups currently raising funding. Don’t miss your shot at the next unicorn! π¦
Passive investing isn’t about luck or secrets—it’s about strategy, patience, and making your money work for you. πΈ Whether you’re interested in property, clean energy, small businesses, or the next big tech startup, crowdfunding gives you the tools and access to get started—even if you’re new to investing.
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Ready to begin?
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Let’s build your future, one smart move at a time. π