#Softaking Traditional crypto staking, often called "locked staking" or "hard staking," typically requires you to commit your cryptocurrency to a blockchain network for a specific duration (e.g., 30, 60, or 90 days). During this lock-up period, your assets are inaccessible. In return for this commitment, you earn rewards, usually in the same cryptocurrency you staked.
Soft staking, on the other hand, usually works through a centralized exchange or a platform that offers this service. When you hold eligible cryptocurrencies in your account, the platform automatically "soft stakes" them for you. This means:
No Lock-Up Period: Your funds are not locked. You can still trade, withdraw, or use them as collateral whenever you choose.
Automatic Rewards: The platform handles the staking process in the background, distributing rewards based on your daily balance.
Flexibility: You retain full control over your assets, making it ideal for those who want to earn passive income while maintaining liquidity.