How would I balance an RPG Game?

About the game-
Recently I have started a project for an RPG fantasy styled game similar to Legend of the Bone Sword and Swordburst. The game has been going well but I quickly encountered 1 major issue, the balancing system. Let me explain more.

In the game there are currently these components:

Weapons- They do damage and you can purchase them for gold
Gold- The in-game currency
Mana- This is the “ammo” that staffs and wands use replenished from a fountain for free
Defense- This offsets a certain amount of damage an enemy can do in the form of armor (Enemies also can have defense)
Armors- Different armors have different defense values
Selling- The ability to sell weapons for 100% purchase value
Rank- The level enemies and players can have they affect the damage and health of the player and enemy. As you level up higher, you get more health
Exp - You gain exp from quests and killing enemies
Quests- A way to earn gold, and special items
Arrows- Used in bows, drops from certain enemies

I’m really confused as to how I can balance all the systems in the game such as weapon damage, enemy damage, how much gold an enemy should drop, how much damage a weapon would do, and its cost, etc. Is there some sort of pattern that games follow or a specific way to do this? Any help would be appreciated.

In-game screenshots as a reference.

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This isn’t much of a #development-discussion, I’d say put this in #help-and-feedback:game-design-support as it helps out with game design.

What you’ll need to make sure that is if everything is fair for the player.

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Locking certain areas to lower levels would be a good start, and if you have a pvp arena of sorts matching players to fight based on level would also be a good idea. My best advice is to get a team of playtesters that can give you a wide range of feedback.

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I actually have implemented one of your suggestions. Currently, to progress to the next area you have to be a certain level. I definitely need to find some playtesters, thanks for the feedback.

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