That is a tough call and it will largely depend on the facts of your case. And while tempting it might be better to wait and reapply. Either way you should consult an experienced immigration lawyer in Phoenix before you act.
If you apply for naturalization by filing Form N-400 and U.S. Citizenship and Immigration Services (USCIS) denied your application, you should receive a written denial letter explaining why your application was not approved. You should also receive Form N-336, allowing you to request a hearing on the denial of your naturalization application. The N-336 is the form you will need to lodge your appeal. Remember you only have 30 days to file the N-336 form.
One reason it may not be best is USCIS often makes the correct decision when it denies an N-400. And likely the decision was made in USCIS discretion, that an applicant has failed to show the requisite good moral character. Time and your ability to bolster your character may be easier to prove.
Also appealing and filing a new N-400 are almost identical costs. While appealing a denial on grounds that the applicant failed to show good moral character is a risk, refilling the application in most cases will be the safer bet, even though it may take longer to go through the N-400 process again.
Ultimately, if you are going to appeal, you should have good basis in the law as to why you think that USCIS made the incorrect decision.
If you need legal advice how to appeal the denial of your N-400, application for naturalization, please call Ariano & Reppucci, PLLC.