One reason some people take profits is to lock in those profits. If you simply hold your portfolio builds overtime as we go through the different circles, but trying to time the market and sell at a high and buy low could let you lock in profits and grow much faster.

The obvious dangers is you could be very wrong in your attempt to time the market and could end up panic buying after selling and the price keeps rising. You also have to hold a stable coin during the period you're locking in your profit which has privacy and custody risks.

You can also lose discipline and try taking advantage of multiple rises and drops in price which brings more risk of getting burnt.