The first thing you need to know is that soy is the yo form of the verb 'ser', while estoy is the is the yo form of the verb estar. Both have the same meaning of am.
So you're asking when do you use each? As a matter of fact, soy is used when you're talking about permanent conditions.
ex. Yo soy alto. (I am tall)
In the previous example, soy is used because 'tall is a permanent condition. Look at the following example:
ex. Yo estoy bien. (I am well)
As you can see, estoy is used when you're talking about temporary conditions, or conditions that might change later.
Here are some examples:
Yo soy estudiante.
Yo estoy en mi casa.
Yo soy inteligente.
Yo estoy cansado.
Very well said. Thanks for pointing out this difference.
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