#SoftStaking
### ๐งฉ What Is Soft Staking?
**Soft staking** allows users to earn staking rewards simply by holding eligible proof-of-stake (PoS) cryptocurrencies in their exchange walletsโ**no need to manually delegate or lock funds**. The exchange takes care of the technical side (like validator participation), and distributes a portion of the rewards back to the user.
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### โ๏ธ How It Works
* โ You hold a supported PoS token (e.g., **ATOM, DOT, XTZ, NEAR**) in your **spot wallet** or designated account.
* ๐ง The exchange uses your funds to participate in **staking operations** via validators.
* ๐ธ Rewards are calculated daily or weekly and **automatically credited** to your account.
* ๐ Most platforms let you **withdraw, trade, or transfer** your tokens anytimeโhence the name โsoftโ staking (vs. โhardโ staking or locking).
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### ๐ Soft Staking vs. Hard Staking
| Feature | Soft Staking | Hard Staking (Locked Staking) |
| -------------------- | ------------------------------------ | ---------------------------------------- |
| Lock-up period | โ No (flexible access) | โ Yes (funds are locked for a term) |
| Risk of slashing | โ Usually none (exchange absorbs it) | โ Possible, depending on validator setup |
| Rewards rate | ๐ก Lower (exchange takes a cut) | ๐ข Higher (direct participation) |
| Control over staking | โ No validator choice | โ Sometimes customizable |
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### ๐ฏ Benefits of Soft Staking
* **Ease of use**: No blockchain knowledge required.
* **Liquidity**: You can trade or withdraw your tokens anytime.
* **Security**: Less risk of user error (e.g., sending to the wrong validator).
* **Passive income**: Ideal for long-term holders (HODLers).
