One other reason not mentioned is to maximise the amount of time the router is off. Large ISPs back in the day would assign an IP address from a specific pool. This pool would change occasionally and the IP wouldn’t update automatically if the user stayed connected. Disconnecting for 5-10 minutes would allow the router to obtain a more current IP address that would offer less congestion. These days they don’t really give out these IP addresses so it’s less of an issue. However it’s still part of the diagnostic process with CS reps.
My router has a reboot button and near the power connection is a physical cutoff switch. I have thrown the switch only for a power cycle and i have removed the power cord only for a power cycle. I have turned off the power switch before reinserting and i have left it on during reinsertion. They have all functioned the same and not affected the device but best practice tells me throw the switch wait and throw it back on for a power cycle. No need to pull the power cord.
Seeing a lot of answers I’m just throwing this in there I thought it had to do with capacitors and cutting the electricity cuts the power to capacitors allowing them to discharge over 30 seconds wiping your memory completely, keeping it plugged in doesn’t discharge the capacitors.
At least that’s what I’ve believed for 30 years 😅
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