Wear n tear 5%. Means my capacity would be at 95% I think. Can't reach 100%
Yes, that means you will never reach the factory-level 100% (2725 mAh) of your battery, but you can still reach 100% of the remaining 95% (2589 mAh). The phone battery level indicator bases its power level report on the usable amount of power, not the total factory-level power. That means, right now, your phone will report based on the usable 2589 mAh, since the remaining 5% can no longer be utilized.
However, there are cases when battery wear disappears with normal use. Battery wear is hardly reversible, but there are some mechanisms that can reverse the effects chemically. I don't recommend messing around with this, though.
Just follow what suits you more: either observe the best practices for battery life (the one I posted in this thread before) or just charge your device when you can and need it. Even the best practices will result in battery wear, although it will be slower.