According to the IRS , the average tax refund for the 2025 season is $3,271 as of March — a bigger windfall than many taxpayers will see all year. America’s 24/7 consumer culture offers no shortage of ways to blow it all for those who just can’t resist the temptation of shiny things.
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However, many others will put their refunds to better use by using the money to pay down debt, build an emergency fund or invest — and that last one is where things get interesting.
A new study from the consumer research platform Attest found that nearly one in four taxpayers plan to use their refund to buy cryptocurrency, with millennials being most likely to convert their repayment from Uncle Sam to digital tokens.
But is crypto investing a smart move for millennials — and might it be for you?
Vet Crypto Just as You Would Any Other Potential Investment
Cryptocurrency is a unique asset class, but regarding the decision to buy, it’s the same as every other investment: It’s the right choice if it matches your risk tolerance, time horizon, budget, investment strategy and goals and if the time, price and market conditions are right.
The SEC offers a list of these and other general considerations to weigh before deciding on any investment — and crypto is no different.
Consider This: 13 Cheap Cryptocurrencies With the Highest Potential Upside for You
Understand the Pros and Cons Before You Decide
While the preliminary assessment of whether to add crypto to your portfolio is roughly the same as it would be for any other asset class, digital coins come with unique and potentially significant benefits and drawbacks that set them apart from stocks, bonds and the rest.
Pros
Cons
Know the Tax Implications
Although crypto is a currency that can serve as a medium of exchange for the purchase of goods and services, the IRS does not treat it as currency. Instead, it treats it as property and, therefore, levies standard capital gains taxes on crypto transactions.
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This article originally appeared on GOBankingRates.com : Many Millennials Are Using Their Tax Refunds To Buy Crypto: Should You?
