The first is incorrect.
I spent a lot of time playing chess at home.
I spend a lot of time playing tennis.
I spend a lot of time reading.
I want to spend more time studying.
If you want to use "by", you need to give some kind of cause and effect.
By playing a lot of chess at home, I learnt how to concentrate on one activity for several hours.
I improved my English by studying hard.
I lost 20 kilos by running 5km every day for six months.
Student or Learner