Fishing is a skill used to catch fish, and with catching fish you will increase in level. Each time your level of fishing increases, the time you have to catch a fish when it bites (explained belows) increases by a millisecond.
To acquire a fishing rod which is necessary to fish, (unless you happen to own a fishing net, which will also be explained down below), you must either go to Aqualantis [pictured below] and buy a fishing rod from Milton in his Fishing Shop for $700, or kill Fishurns in Aqualantis.
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After getting this piece of equipment, you can fish! To start fishing, follow the instructions below:
To fish you must first find a fish in a body of water. Then you have to press C to put down your bait. There should be a white circle that surrounds your rod. If the fish is in the circle, it will get attracted to the bait. You then have to wait a little bit until an exclamation mark appears above your head [pictured below]. If this happens, release C to catch the fish. If you are fast enough, you will catch the fish.
Shiny Fish:
Shiny fish are fish that are rare and can be sold for lots depending on what it is. It will appear a different color than the normal breed of fish, and from time to time have a shining effect. So if you spot one, catch it! Some of these fish can be used to craft powerful items, so you may chose to keep it to make a strong item, or sell it for some money. These shinies can also be used to increase stats, similar to the way books do from libraries (explained later).