I have a pet and its the normal green one but I saw someone with one but it was like, upgraded I guess? Is there a way to level up our pets or something or make them better cause I dont even know what mine actually does. It just smiles when I kill something.

There is no level with pets.
It's just a different pet, which looks a lot like yours.

Okay thanks, but what does a pet even do?

pet only following you.

pet helps you all you have to do is buy a ring but is there a way to like make your pet into something else like a dragon