Is it better to focus on capital appreciation or building passive income streams when you're starting small?

Both matter but sequence matters. Early on, focus on growth because you need capital to build meaningful passive income. When your account reaches twenty to thirty thousand, then dividend strategies become interesting. With three thousand, chasing yield usually means compromising on quality.

Jumped straight to dividend hunting with my initial three thousand because I liked the passive income idea. Turns out the yields available at my risk level were barely above inflation. Shifted to pure growth for five years, then transitioned into income strategies once I had substantial capital. Much better approach. Found good information about this sequence here: https://brokerseed.com/en/3k-investment/