Julian Figueroa, the host of The Exit Manual, has a story that many Bitcoin enthusiasts wish to avoid. Over the past eight years, Figueroa lost 14 BTC—today worth around $1.6 million. But what makes his story more significant is his belief that millions of other Bitcoin investors are on the same path to making the same costly mistakes he did. If you’re new to the world of Bitcoin, Figueroa’s experience could save you from making those same errors.
Figueroa says that “90% of people buying Bitcoin today” will fall into one of three traps. His mistakes serve as a sobering reminder that the road to financial sovereignty is fraught with risk, and security mistakes can cost you more than just money.
Bitcoin Security Mistake #1: Day Trading Dreams
Figueroa’s biggest regret was trying to outsmart the market by day trading:
“I lost 4 BTC just because I thought I’d buy low and sell high. Turns out, it’s nearly impossible—nobody beats the market over time, not pros, not hedge funds, nobody. If you just buy and hold, you almost always outperform the traders.”
FOMO, emotional decision-making, and a misguided belief in market timing can trick even the most experienced traders. Bitcoin’s volatility lures many into risky short-term moves that often lead to loss. According to Figueroa, the key to securing Bitcoin is resisting the urge to chase the market’s highs and lows.
Bitcoin Security Mistake #2: Chasing Altcoins
Another costly mistake Figueroa made was falling into the altcoin trap. He recalls:
“I bought coins I thought would outperform Bitcoin. They didn’t.”
Altcoins often come with promises of huge returns, but the reality is that most of them underperform Bitcoin in the long run. Figueroa, like many others, chased speculative coins that promised quick riches, only to see them fade into obscurity. The takeaway? Bitcoin should be your main focus, and speculative altcoins are a dangerous distraction.
Bitcoin Security Mistake #3: Trusting Centralized Exchanges
However, Figueroa’s most painful lesson came from trusting centralized exchanges. He recalls:
“8 BTC—nearly $1 million—vanished when an exchange failed.”
It’s a common mistake. Many Bitcoin investors trust exchanges to hold their funds, believing them to be secure. But exchanges are not banks; they’re more like casinos. When these platforms fail, users lose access to their assets. Figueroa’s story emphasizes the critical importance of self-custody—the practice of holding your Bitcoin in your own wallet, under your control.
You're Not Alone: Epic Bitcoin Losses Worldwide
Figueroa is far from the only one to experience significant losses in Bitcoin. His story mirrors that of countless others who have learned the hard way about Bitcoin security.
James Howells: Accidentally threw away a hard drive containing 8,000 BTC, worth over $900 million.
Stefan Thomas: Lost access to a wallet with 7,002 BTC (worth $777 million) after forgetting his IronKey password.
Mt. Gox: In 2014, the collapse of the Mt. Gox exchange resulted in the loss of over 850,000 BTC.
QuadrigaCX: When the founder of QuadrigaCX died, he took the private keys to over $200 million in Bitcoin with him, locking users out of their funds.
These stories serve as stark reminders that Bitcoin security is all about personal responsibility.
How to Avoid These Mistakes
So, what can you do to avoid falling into these traps? Figueroa’s advice is straightforward:
Long-Term Holding Over Day Trading: Don’t try to time the market. Historically, holding Bitcoin for the long term has outperformed short-term trading attempts. Most day traders lose more than they gain.
Stick to Bitcoin: Don’t get distracted by altcoins promising big returns. Focus on Bitcoin, the most proven and secure asset in the crypto space.
Self-Custody is Key: Don’t trust exchanges to hold your Bitcoin. Learn how to store your coins securely in a private wallet. Remember the golden rule: Not your keys, not your coins.
Bitcoin isn’t just about making money—it’s about securing your future. Figueroa’s painful lessons can be a blueprint for avoiding the same fate. Don’t let your Bitcoin journey become another cautionary tale. Take responsibility, learn the ropes of security, and build a more secure future for your digital assets.$BTC
