Soft staking in cryptocurrency allows users to earn rewards on their digital assets without locking them up for a fixed period. Unlike "hard staking," where funds are inaccessible, soft staking provides flexibility, enabling users to trade, withdraw, or utilize their tokens at any time while still accruing rewards. This method is often offered by centralized exchanges, where a user's eligible balances automatically participate in staking, offering a convenient way to earn passive income from holding crypto. It's ideal for those seeking rewards without sacrificing liquidity.