#SoftStaking

▶️What is Soft Staking?

Soft Staking is a new concept introduced by a few centralized exchanges, notably Binance, to eliminate the risks out of staking. On the basis of being completely risk-free, this new type of staking is also referred to as flexible staking. You can earn passive rewards on your spot holding, and yet you can trade and withdraw the specific cryptocurrency at any time you desire

▶️Requirement to Participate in Soft Staking

Not everyone can earn on the offered digital assets. You can qualify for the soft staking rewards only if you meet the minimum holding amount criterion stipulated by the exchange. However, there is also a cap on the required holding amounts. You can earn the staking rewards to a predefined limit. For example, Binance offers soft staking rewards on $POL only till 300,000 $POL tokens. Any holding above this limit is not considered while distributing the rewards.

▶️Soft Staking Less Risky than Normal Staking

Many risks associated with staking in traditional sense get eliminated when you opt for soft staking. The first and most serious risk in normal staking is the time limit imposed by the network. If you have locked your assets and the market experiences swings, you cannot stop loss or take profit at will. When you eventually unlock your assets, you may find yourself at considerable loss or deprived of lucrative gains. In contrast, soft staking does not bind you. You can sell your cryptocurrency whenever you want, saving you against any loss or deprivation of profit.