If there had been someone willing to give that amount, I would certainly convert part of it into fiat, and even consider start a small business. But I would still hold more than half of the coins.
Yup that's the right way to use them, don't sell all of them and don't hold all of them, and its always good to invest some of them in trading to get better results in future.
I think in the future bitcoin will have higher prices saw the bitcoin is growing of course it is a positive signal, so I think if you have a lot of bitcoin done carefully, consider before selling, I'm sure if you could continue to hold you will get a greater profit, because the price will skyrocket in the future