Yes, when you invest 100 dollars and your crypto value rises to 1000 you want to take some profit...

But if you sell, you create a Gain or Profit, which is taxable, in some countries 20% goes to your government... so to reduce taxes, instead of selling, you could take out a loan...

The goal is to sell at the top of a bull market. Because crypto is very volatile collateralized loans in crypto are usually overcollateralized. But if the bear market crash is hard enough, your collateral may be liquidated. That liquidation is a tax event. What all this means is that you can't completely avoid taxes buy borrowing money against your crypto assets except if the loan is relatively short-term or is taken before a crypto run. For that purpose crypto loans are perfect. You can borrow money against your crypto in the beginning of a bull market without losing appreciating coins.

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