Each achievement you get gives you a skill point. Each skill point is used to upgrade you Health, Speed, or Attack, or any other thing mojang makes a skill
Each level up for Health increases your HP by 1 (so 2 HP for 1 heart)
Each level up for Speed increases your move speed and attack speed by 2%\
Each Attack level up increases your damage by 1 HP and reduces mine time by 2%
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