OP, the first decision you need to make is whether you want to try to make more money in the bitcoin world, or cash out into the real world. If I was you, I would do a mix of both. I would cash out a certain number of bitcoins, maybe 100 or so, just enough to live comfortably for awhile. Don't use mtgox to cash out, use coinbase or absolutely anything else. Once you cash out, BE ABSOLUTELY SURE to declare the profits as income to your country's tax revenue service.
If you decide to do a 100% cash out, perform the cashout over a time period rather than selling all at once. This will make a better price for you and prevent any big market movements from being triggered by your cashout. In addition, if you decide to do a complete cashout, consider doing it over several years to prevent your tax bracket from going up. It would suck complete ass to pay 50% tax on your bitcoin cash.

If you want to make more money in bitcoin, the rest of the coins should be used as "capital". Since you have access to quite a lot of instantly transferrable money, your options are directly dependent on how you can spend that money. With bitcoin in its infancy merchant-wise, there's really not too much you can buy, which means the business venture you choose has to be based on the coin itself. A lottery would probably be the best option considering the amount of money you have, and it's almost guaranteed returns because you only choose winners once you have enough tickets sold to cover the prizes. To draw attention to your lotteries, run the first few at a loss; since most lotteries run at a loss for the ticket buyer, it would draw many eyes on bitcointalk/wherever if you ran the lotteries at a profit to the ticket holder.

If you take any one thing from this post, I highly recommend _against_ day-trading or any kind of altcoin investing. Bitcoin/altcoin investment is known as "speculation" in the finance world, and it is literally the riskiest kind of investment you can make. There are financial analysts much smarter than you or me who struggle to make a profit in speculation when using advanced prediction algorithms and analysis methods. Day trading is the same story - virtually nobody who takes part in day trading makes any money. When you hear success stories from people who worked the stock market, what you fail to hear is the equal number of massive stock failures. My dad is probably one of the the best examples of this - he invested 100k in the stock market and did day trading using one of those candlestick prediction methods, he got out by the skin of his teeth with only 60k remaining.

So there's really only two options I can recommend here - either you cash out of bitcoin over some period of time, or use the capital you have to start some kind of business. I recommend against trying to start a business if you know that you aren't business savvy.

Stay safe op

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