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?
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.
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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.
Potential for magnified returns: Bitcoin started 2019 trading at around $3,800. By the start of 2025, a single token sold for more than $90,000 — and those kinds of outsized gains are not unique to bitcoin. Many cryptocurrencies offer the potential for enormous returns that the stock, bond and real estate markets typically can’t match.
Growing mainstream support: Crypto is still in its infancy compared to traditional fiat currency, but it has emerged from the niche corners of the investing world into the mainstream. More and more coins are providing real-world utilitarian function, more businesses are accepting crypto as payment, some crypto exchanges are publicly traded companies, and some ETFs now include digital assets in their holdings.
Easy accessibility: With a wallet and Wi-Fi, you can access your crypto holdings around the clock at any time.
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