The difference is, once you have enough fiat to live relatively in comfort for what reason is there to sell a long term hold or chase a fiat profit from day trading? Why did you buy ETH only to sell it? Because you viewed the $ value as being of higher utility than the token? Will you still view it like that if your living expenses are paid? Do the dollar amounts matter for people who don't need it?

Imagine these are penny stocks, and the short term profits offer diminishing return in utility, at that point it becomes about what you can do with tokens which you can't do with your fiat. We need to cash out crypto to pay taxes, rent, buy food, healthcare etc. But someday when you earn mostly crypto, or if you get enough passive income from crypto, then you don't have to day trade to live. Would you still day trade if you didn't need the money?