The average tax refund amounts to around $3,000, which is a significant amount for many Americans. And the sum of that money could turn into more if invested wisely.
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Investing in cryptocurrency certainly carries a high level of risk, but there is also a high possibility of reward. A recent analysis conducted by Token Metrics found that if you invest a $3,000 tax refund in four major tokens each year (Bitcoin, Ethereum, XRP, and Solana) between April 2022, it would currently be $22,569.
Let’s take a closer look at why you might consider investing tax refunds in cryptocurrencies and what cryptocurrencies should be considered.
According to a tokenmetric analysis, if you invested $3,000 in Bitcoin, Ethereum, XRP and Solana in April 2022 a year later, you’d have $6,059. If you invest $3,000 in Bitcoin, Ethereum, XRP and Solana in April 2023 a year later, you’ll have $10,998. And if you invest $3,000 in Bitcoin, Ethereum, XRP, and Solana in one year in April 2024, you’ll have $5,517.
“Instead of spending on short-term desires (tax refunds), putting it in encryption allows you to turn that one-time check into a long-term benefit,” said Ian Balina, CEO of Token Metrics. “If I refunded a $3,000 refund every year since April 2022 to Bitcoin, Ethereum, XRP and Solana, I’m sitting at about $22.5,000 today. That’s almost seven times the return. Not for luck, but for consistency.”
For investors taking any risk, investing tax refunds in crypto can be a brilliant reward.
“The code moves quickly and historically rewards people who appear early and consistently,” Barina said. “But this isn’t about chasing the pump. It’s about building a position for quality projects with power. Think of Bitcoin, Ethereum, Layer 1 (the base blockchain network) in real traction. This is where generational wealth is built.”
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If you haven’t yet decided what to do with your tax refund this year and are interested in investing in crypto, Ballina recommends investing in Solana and Bitcoin.
“Bitcoin remains the foundation of our crypto portfolio,” he said. “It is the most combat-tested asset, and its role as digital gold continues to strengthen, especially as institutional adoption grows.
“Solana, on the other hand, represents the next wave of blockchain innovation,” continued Barina. “It shows increased resilience, scalability and developer traction, positioning itself as one of the leading smart contract platforms with real-world use cases.”