Soft staking, also known as flexible or liquid staking, is a method of earning rewards on cryptocurrency holdings without locking up assets for a fixed period. Unlike traditional staking, where coins are committed to a blockchain network for a set time to validate transactions and earn rewards, soft staking allows users to maintain full control and liquidity. You can hold supported cryptocurrencies in a compatible wallet or on an exchange like Binance, KuCoin, or Lido, and automatically earn rewards based on the amount held, with the flexibility to trade, withdraw, or use the assets anytime without penalties.
🍊How It Works
- Hold Assets: You deposit or hold eligible proof-of-stake (PoS) cryptocurrencies.
- Automatic Rewards: Rewards are calculated periodically (often daily or hourly) based on your holdings and distributed in the native token, typically daily or monthly.
- No Lockup: Unlike hard staking, which requires locking assets for a set period, soft staking lets you move or sell your assets at any time, making it ideal for those prioritizing liquidity.
- Platforms: Exchanges like Binance, KuCoin, and Crypto.com, or DeFi platforms like Lido, offer soft staking.
🍊Benefits
- Flexibility: Trade or withdraw assets anytime without penalties, unlike locked staking.
- Passive Income: Earn rewards simply by holding, with minimal effort.
- Liquidity: Assets remain accessible for market opportunities or personal needs.
-Accessibility: No need to run a validator node or meet high minimum staking.