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Elements

Habitats

Now each element has their own habitats. Each habitat has their own pros and cons. The initial Terra habitat has a low gold cap(500) but the terra dragon has high gold/min earned. The sea habitat has a higher gold cap(7500) but the sea dragon has low gold/min potential. The solution would be to breed both together to get either the mud or waterfall dragon so that they can be put in the sea habitat.
Here is a chart from wikia.

As you can tell from the chart, Flame, Sea, Ice, Nature, Metal, Dark and of course Legendary have decent gold caps. To earn plenty of gold, you will want to put most of your dragons in the above habitats. Unless you are an active player, I would not recommend having too many Terra habitats at all. One will do.





Gold You earn gold by putting your dragons in the habitat. Each dragon earns a certain amount of gold/min.  To increase the amount of gold/min they earn, you will have to level up your little babies by feeding them food.

Food

In order to feed your dragons, you will have to build farms. Farms can be upgraded later to grow more food.


The most efficient way to use your gold to grow food at the beginning is the 30 second dragon bell. Once you get a lot of gold, it doesn’t matter which food you grow.

Experience

A great way to gain experience is to keep buying a farm and selling it again. As long as you have gold, you can gain experience easily by doing it over and over again.
Buy Food Farm -> 100 gold and 100 Exp -> Sell Food Farm -> 50 gold = Total cost for 100 Exp is 50 gold.
You can also do that for the Big Food Farm and Huge Food Farm.

Level

Each level you gain gives you 1 gem and unlocks new habitats after you get to a certain level.

Gems(How to get gems in Dragon City)

This is the quick way to get everything. You can buy gems with real money and speed up EVERYTHING. However, that would totally destroy the fun. Besides using real money, you can also earn them in game. Here are a few methods in which you can get gems:
1) Participate in the Dragon League Tournament in the Combat World located at the bottom right of the game screen. You use your dragons to fight other player’s dragons. Once you win the tourney, you will be awarded 2 gems and some gold. You can combat 3 players every 6 hours, so use it whenever you can!
2) Build a Dragon Stadium and use your dragons to fight in it. Each tournament you win gives you 2 gems and some gold.
3) The daily bonus reward located on the right side of the game screen gives you a small chance to win 45 gems. I have yet to win it once, so good luck with that.
4) Leveling up gives you 1 gem.
5) Participate in surveys to earn gems. Some might require credit card/personal information. Not a good way if you are not willing to give out info.
6) The Monday reward gives you 4 gems if you pick the right prize.

Buildings

The important buildings that you will need to get after you get to the later levels are:
Breeding Mountain: This is the building you use to breed dragons.
Food Farm: You will need food to level your little babies.
Dragon Stadium: Allows you to increase your dragon’s strength and gain gems.
Temples: These will allow your dragons to advance past level 10.
Magic Temple: Dragons can get to level 15.
Noble Temple: Dragons can get to level 20.
Knight Temple: Dragons can get to level 25.
Master Temple: Dragons can get to level 30. (Requires 25 gems to build this)
Ultra Breeding Tree: This is another alternative to the breeding mountain. While it is not necessary, it can help speed up your breeding process.
Crystals: These can help improve your gold earning rate/min. However, the legendary dragons are much better than building crystals once you get your hands on one of them.

Expanding

Expanding your territory becomes a necessity once you have way too many habitats.
The first 6 expansion is free and it will start to cost gold/gems/neighbors as you try to get the next island. You will also have to clear stones, trees or rocks along the way.





Source: Gamesfreetop.com