I would say go with option one. But not long term. Go for short term and rotating the same with different coins. Make a list of certain coins with good track record, real world adoption. Mostly the ones with <$1. Why this is very important is because these coins tend to come back to their original price if not higher whenever BTC rallies and Alts go down. Also try Kucoin exchange and put some money on the new coin that gets listed there. Again do some research. For Eg: BNTY was trading 0.13 when it hit Kucoin. And within 20 days it reached ATH of 0.91. So a lot of profit there. And remember any small profit you make is profit. As your BTC get increasing, you should see some exponential gains later.

20 days back I put $350 on Kucoin exchange. Since I follow r/Cryptocurrency, there a some coins that get a lot of shilled there. So I bought BNTY, PRL, DBC, QLINK as soon as it got listed there. Now my investment is worth $2000.

I am a beginner trader. And some protraders might lol over this method. But it has worked for me and I know it will work again.