What should I do?

Hun, I know you're young, but let me let you in on some secrets. First off, relationships aren't measured in levels of physical activity. There can be a couple that totally love each other more then anything and never kiss. And then there can be a couple that don't care about each other at all and just have sex. You're saying that you want to take your relationship further. Well engaging in sexual activity doesn't take your relationship farther, and it doesn't bring you two closer. You say that you're not ready, which is good. Don't ever do anything that you're not ready to do. I've never heard a girl say later on, I wish I would have given that guy a blowjob or handjob a long time ago. But you do hear girls REGRETTING that they DID do it. But by just spending time with the guy, you show that you care about him. You just need to realize that there are some guys that are just looking for sex and sexual favors. I'm not saying this guy is one of them, but there are guys out there. And if he breaks up with you because you won't do sexual stuff for him, then GOOD. You don't want a guy like that anyway. Because then you realize that he was just a jerk and just wanted sexual stuff. You want a guy that likes you for WHO you are, not WHAT you have (your body), or WHAT you do to him (sexual stuff).

Depends on your age and how long you've been together. It takes at least a couple months and a couple arguments to really see if you are good together.
Your asking this question because you have doubts. Don't do anything your not 100% sure about and ready for. Be smart in all areas about it.

Date a little longer and then see if you guys are compatible in the long run then intimacy will follow