Those ranks you're talking about are bound to a village, they are not something general for everyone.
Instead of levels, everyone will be given a couple of points they can distribute over a list of qualities for their character (speed, strength, chakra,...) at character creation. This would be permanent though and not possible to change in the future for a character, as you are "born" that way.
Using jutsus gains you jutsu experience which will then lead to unlocking jutsu points. These jutsu points can be used to either make your current jutsu stronger (with a max strength of like level 3 or 3 invested jutsu points) or learn a new one (within your chakra nature limit of course) that may have different advantages. Certain jutsus (e.g. Odama Rasengan) will require you to have the maximum level of other jutsus (e.g. level 3 Rasengan).
Once you reach e.g. level 10 in one chakra nature, another chakra nature (or your secondary chakra nature) will be unlocked. This will allow you to invest jutsu points in the newly available jutsus to you.
So obviously you will have a jutsu level. This jutsu level can only get as high as it is required for you to be able to maximize all jutsus in your primary and secondary chakra nature. The more jutsus Shinobi Life Online will get, the higher this jutsu level cap will become. Making your jutsu level rise will also become more difficult the higher it gets. This way, the higher your jutsu level is, the more jutsus your character will have available to him. This won't necessarily make your stronger, but it will give you a lot more to work with. Armor, weapons and certain special items will also give you a boost, so it's not just all about the player's qualities and jutsu level.
If you're part of a village, your jutsu level will determine your rank.
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