Investing is the most popular and practical way to earn passive income. What makes investing really worthwhile is the power of compounding that comes with it. You can utilize the power of compounding when it comes to shares and stocks and cryptocurrencies. Although most of the time the cryptocurrency increases in value which has got nothing to do with compounding, however, there are ways to stake or lend crypto and earn money with interest. However, in shares, it is compounded when you reinvest the dividends back into buying more shares. Another popular investment is real estate. You can also invest in machines and equipment. When you rent out your property or machine and equipment you can make passive income out of it.