The idea of earning money while you sleep sounds like a dream—but with the right tools, it’s possible to build reliable passive income streams in 2025. Thanks to modern investing apps, you no longer need a Wall Street office or a real estate empire to grow your wealth. With just your smartphone, you can start small, stay consistent, and let technology work in your favor.
In this article, we’ll explore some of the best apps for generating passive income—from stocks and crypto to real estate—so you can choose the right ones to fit your goals.
1. Robinhood – Stocks & ETFs
When it comes to beginner-friendly investing apps, Robinhood has completely changed the game. Launched in 2013, Robinhood’s mission was simple: make investing accessible to everyone—not just Wall Street professionals.
Today, it’s one of the most popular stock trading platforms in the U.S., especially among young investors looking to build passive income streams.
Why Robinhood Works for Passive Income
Unlike traditional brokerages that charged high commissions, Robinhood offers zero-commission trading, which means you can buy and sell stocks and ETFs without losing money on fees.
For those seeking passive income, the platform shines because of its dividend reinvestment option and fractional share investing. This makes it easy to purchase pieces of big-name companies—like Apple, Amazon, or Tesla—without needing thousands of dollars upfront.
Imagine putting $10 into a dividend-paying stock. Over time, those dividends get reinvested automatically, compounding your returns with no effort on your part. That’s the foundation of passive wealth building.
Key Features
- Fractional Shares → Buy portions of expensive stocks with as little as $1.
- Recurring Investments → Automate your stock or ETF purchases weekly, bi-weekly, or monthly.
- Dividend Reinvestment (DRIP) → Any dividends earned are automatically reinvested into the same stock.
- Commission-Free Trading → Keep more of your profits since Robinhood charges $0 for trades.
Pros & Cons
✅ Pros:
- Extremely easy to use, even for beginners.
- No trading commissions or account minimums.
- Great for building passive income through dividend reinvestment.
⚠️ Cons:
- Limited research tools compared to advanced platforms.
- Not ideal for investors who need deep analytics or retirement account options.
How to Use Robinhood for Passive Income
- Choose Dividend Stocks/ETFs → Focus on companies with a history of paying dividends.
- Set Up Recurring Investments → Automate contributions to build wealth over time.
- Enable DRIP → Let Robinhood reinvest dividends automatically.
- Stay Consistent → Passive income takes time—patience is key.
Robinhood has become a household name for beginner investors. With zero-commission trades and a user-friendly interface, it makes investing in stocks and ETFs incredibly simple.
🔹 Passive Income Angle:
By building a portfolio of dividend-paying stocks or low-cost ETFs, you can set up recurring investments and let the dividends trickle in automatically.
✅ Pros: Easy to use, no trading fees, fractional shares.
⚠️ Cons: Limited research tools compared to advanced platforms.
2. M1 Finance – Automated Portfolio Growth
M1 Finance is often called the “set-it-and-forget-it” investing app. It allows you to create a custom portfolio (“Pie”), and then automates investing, rebalancing, and dividend reinvestment.
🔹 Passive Income Angle:
Perfect for long-term passive investors who want automation. Once set up, M1 Finance manages your portfolio with minimal effort on your end.
✅ Pros: Hands-off investing, automatic rebalancing, free account tiers.
⚠️ Cons: Limited to market hours (no instant trading like Robinhood).
3. Coinbase – Crypto Staking Made Simple
Crypto may be volatile, but it’s also creating new ways to earn passive income. Coinbase lets users stake certain cryptocurrencies like Ethereum, Solana, and Cardano—earning rewards just for holding.
🔹 Passive Income Angle:
By staking crypto, you earn a percentage yield (APY) as the network rewards you for securing transactions.
✅ Pros: Beginner-friendly, insured custodial wallets, easy staking setup.
⚠️ Cons: Staking rewards fluctuate, and crypto markets are high-risk.
4. Fundrise – Real Estate Without Buying Property
Traditionally, real estate was a passive income game for the wealthy. Fundrise changes that by allowing everyday investors to buy shares of income-producing properties through REITs (Real Estate Investment Trusts).
🔹 Passive Income Angle:
Fundrise pays investors through rental income and long-term property appreciation, creating consistent cash flow.
✅ Pros: Low minimum investment, access to commercial and residential real estate.
⚠️ Cons: Money is tied up for longer periods, not as liquid as stocks or crypto.
5. Acorns – Micro-Investing for Everyday Passive Growth
Acorns is designed for beginners who don’t want to think too hard about investing. The app automatically rounds up your purchases and invests the spare change into a diversified portfolio.
🔹 Passive Income Angle:
You’re literally turning everyday spending into passive investing. Over time, those small contributions compound into meaningful growth.
✅ Pros: Automated savings, hands-off investing, great for beginners.
⚠️ Cons: Monthly fees can feel high for small balances.
6. Stash – Learn While You Earn
Stash combines investing with education, making it ideal for people who want to understand the process while building passive income. You can buy stocks, ETFs, or even fractional shares with as little as $5.
🔹 Passive Income Angle:
Set up recurring investments in dividend-paying assets to grow long-term wealth.
✅ Pros: Beginner-friendly, educational content, flexible deposits.
⚠️ Cons: Monthly fees apply, limited advanced features.
Final Thoughts
Building passive income doesn’t mean you need thousands of dollars upfront. With today’s apps, you can start small, stay consistent, and let compounding do the heavy lifting. Whether it’s dividend stocks on Robinhood, automated portfolios on M1 Finance, staking crypto on Coinbase, or real estate through Fundrise, there’s a platform for every type of investor.
👉 The key is to choose the app that matches your risk tolerance and financial goals. Remember: passive income takes time, but with patience and consistency, it can create long-lasting financial freedom.
