Upgrading to SSD .. am I not sacrificing extra space?

Hello
I am currently running a Macbook with 1TB hard drive (which is almost at its capacity) and wanted to upgrade the hard drive to SSD.
I have seen many youtube videos where people swap out their 500 GB grives for 250 GB SSD.. my question is are you not sacrificing space for speed?
In my case, is the only choice to put the SSD in place of the current Hard drive and swap out the optical drive and put the old hard drive in its place?
Or is there a better way to upgrade both the speed and capacity of my Macbook which is only 1.5 year old.
Thanks

Thank you all for your responses. But the problem is the maximum of 1 TB SSD would still be too small. as I am almost at capacity of the current 1TB drive.
Also having an external drive hanging from your laptop also defeats the who purpuse of having a laptop and being mobile with it.
I heard that I could get significant speed boost if I put my OS X on the bootup SSD (a 250 GB SSD would be sufficient) and move my old HDD to theslot where the Optical drive is currently housed. I will then have a total of 1.25 TB and a much faster system..I would also avoid having a USB external
Pros? Cons?

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