Your dragon should be at least level 4 before fighting in an arena. The battle system is element dependent. For example, fire can do damage against air-based dragons, but will have a smaller effect against water-based ones. Each element has a strength and weakness against another type. Have a variety of dragons to choose from and select the one that is strongest against your opponent. Because you will start with an Earth-based dragon, use it against nature-based dragons.
Maximize habitats that can hold large numbers of dragons. Fill them with dragons that produce quick gold. Leveling up your dragons will increase the amount of gold that they produce.
Instead of buying multi-element dragons with gems, breed them. Feed your dragons to level them up. Choose helpful perks for dragons that can fight. For example, the free level for extra power to your dragon, or increased breeding time. Use hybrid multi-element dragons in battle to have a greater chance to exploit enemy weaknesses.
Purchase decorations, then sell them to earn experience points. Try doing this with the Large Tree to quickly earn experience points.
Invest in greenhouses to grow more food. You can then keep your dragons fed to level them up faster. Start with three small green houses at first and plant food that will be eaten across all dragon types, for example blackberries or pumpkins. Try to diversify the food grown in each greenhouse. As you gain levels you will be able to purchase a larger greenhouse which will be able to contain even more food types. A certain amount of food is required to keep a dragon fed (varies on size and appetite). Have plenty of it available to keep them growing.
With each additional level, you will increase the maximum number of Dragon habitats. Evenly spread your habitats to ensure that you will have room for all types of dragons. There are eight types of habitats. You will run out of space quickly. Optimize it by moving everything as close as possible.
Perks usually become available with every third level. You can choose between two perks, depending on what your desired skill is for that dragon. Increasing a dragon's breeding speed is always useful, as it will allow it to level up faster.
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