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 You are right then, I did not understand, nor I am sure I do now though.
Do you mean that by selling and immediately buying again, you reset the capital gain so that, when you sell it again in the future, it will be calculated on the second purchase price, hence taxation will be on a lower amount?
 
 That's correct.  It's important to understand the tax brackets on long term capital gains.  The first $47,000 of long term capital gains (in the US) is taxed at 0%.  So by selling that amount of bitcoin, you realize a gain, but it's a 0% taxed gain.  Then when you buy back, your cost basis is set to the new purchase price.  When you eventually sell you are taxed from the new tax basis.

It's a way to protecting $47,000 a year from taxes, every year.
 
 that is smart alright, and there is no custodial business involved either, except the minimum required time the coins are on an exchange, so win-win. 
 If you are worried about the exchange risk, then do smaller amounts, it won't matter.  Move $4700 over 10 times if you want.