Skills are the foundation of the game, from combat to creation, almost all actions are tied to a skill. Leveling your skills is done through gaining experience in that skill. It unlocks further actions allowing for more difficult tasks to be done and increasing the success chance of already unlocked actions.
Skills can be grouped into 3 general categories, the current skills in the game are:
Combat skills are used during fighting and raise your combat Level.
Harvesting or Gathering skills are skills used to gain resources that can be used for other skills or sold to other players.
Crafting skills use raw materials to create a variety of types of objects in game, from consumables to equips and more.
Skills do not have a maximum level, however the observed soft cap is level 120 because it takes a long time to achieve this goal and skills do not currently have content released for beyond 120.
Temporary effects that increase or decrease skill levels are negated at 1 point per minute. Potions that increase skill levels and damage to health are the primary examples of this.