Soft stacking in cryptocurrency refers to a flexible method of earning rewards by holding or delegating coins without locking them completely, allowing users to maintain access to their assets. It’s often used in Proof-of-Stake (PoS) or delegated PoS networks.
How to Activate Soft Stacking:
You can activate soft stacking by:
Holding supported PoS tokens in wallets or exchanges that offer soft stacking (like Binance, Kraken, or Trust Wallet).
Delegating tokens to a staking pool or validator without locking your funds (depends on the network and platform).
Benefits of Soft Stacking:
Earn passive income without locking funds
Flexibility to trade or withdraw anytime
Lower risk compared to hard staking
Supports network security and decentralization
My Experience:
I used soft stacking on Binance with Tezos (XTZ). I could earn staking rewards daily without freezing my funds, which meant I could sell or transfer them anytime. It was ideal for market flexibility while still generating passive income.