I need help please! Urgently!

Ok, so there's this guy (sorry about the teeny stuff to come) I'veliked loved since the start of last year, he sorta knew that I like him, but I denied it, because I knew that he has a whatsername that he'd been chasing for a while..

I went out with another person for about four months... I love her, but we broke up, she deserves someone better, I love her, so much.. But I can't be the perfect sort of girlfriend, I gots issues, I complain too much and I'm quite immature.. I laugh at worms for god's sake!
Any way..
Apparently that whatsername doesn't see him the same way...

So we've been spending a whole lot of time together, we're quite close as friends...
But yesterday we were laying on the ground just talking about everything, like we usually do..
And I happened to look over at him, he was looking at me.. We kissed.. Not like short friendly kiss, but long icky kiss.. Not that I found it icky.. But you know what I mean... I hope..
And we continued talking, but we talked about different things than what we usually would; such as love and how we see it...

He thinks it's some chemical imbalance that happens or some scientific thing like that..
I think that love is like something unexplainable.. I don't get it.. It's not something that you really can control.. it's INSANE!

Back on topic, we had an argument, he told me he cares allot about me, and that I should stop cutting.. He happened to see my legs, and got really freaked out about how bad they look.. With cuts and such.. He asked how it happened..
I told him my cat did it.. I could have been more inventive.. But NO I had to say it was my fucking CAT!
He obviously figured out what they were and he said.. "You really should stop doing that,"
I asked why
and he said "Because I really care about you, I don't want to see you do that to your self'
So I said "you shouldn't care about me, I did it to myself, it's stupid just forget about it'

And we had a fight... About us..
He in the end said... "Do you want to be friends.. or do you want more? I know what I want.."

I don't know what to say... I could risk fucking our friendship up..
But I suck in relationships.. I freak out.. I don't know why..

I need help, please.. If you were in my position, would you stay friends or would you want to be more than friends...