#SoftStaking 🧭 What Is Soft Staking?
Soft staking lets you earn staking rewards while keeping full access to your tokens—no fixed lock-up. This is often offered by exchanges or staking-as-service platforms. You simply hold eligible crypto in your account, and the platform automatically stakes it on your behalf, crediting rewards regularly. You retain the ability to trade or withdraw anytime without penalty .
🔍 How It Differs from Traditional ("Hard") Staking
FeatureSoft StakingTraditional (Hard) StakingLock-up LiquidityFully liquid—trade or move anytimeIlliquid until unlock period endsReward Rate (APY)Lower (e.g. ~2‑5%)Higher (often ~5‑15% or more)Network ContributionIndirect—via platformDirect participation in network securityRiskPlatform risk (custody, exchange solvency)Validator/node risk (slashing, uptime)
✅ Key Benefits
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⚠️ What Are the Trade-offs?
Lower APY: Platforms offer smaller returns compared to direct staking.
Centralization risk: You're trusting a third party (e.g., crypto exchange).
No network security: Your stake doesn’t directly support blockchain validation .
🏦 Where It's Offered
Many major exchanges and platforms support soft staking, including:
KuCoin: Pioneers of soft staking; supports dozens of assets with daily snapshot rewards based solely on holdings in your account .
Crypto.com: Its “Soft Staking / Stake & Earn” pays daily interest on coins or even fiat held in exchange wallets—no lock-up .
Others include Binance Flexible Staking, Lido, and staking-as-service platforms like **Staked