Am I better to level my 3* heroes or continue with my 4* even if I don’t have the mats to fully ascend the 4*?
That’s very subjective based on who you’ve got, how far through the game you are and whether you spend tons of cash.
I’d suggest a ballpark strategy of two teams of good 3* before worrying about 4*.
Exceptions might be game changers like Wu or Proteus.
Or if you have 4* that directly improve on 3* i.e. Grimm has a similar but better skill than valen.
But 3* will serve you well in war, tournaments and events for months to come unless you are spending big money.
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I have both Grimm and Valen maxed with one emblem each. I am currently working on Wu. I just did a 10 pull on Atlantis and got chocin, namage, and Gato and was wondering if I should work on them. Also got Danz and amone ans agwe
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I’m thinking I should just slowly work on getting them all levelled.
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I’d say 3/60 4* are better than fully ascended 3* in most cases. Exceptions are, like JonahTheBard already said, rare events and tournaments. You will need a few good 3* to finish those and get the ascension mats for your 4*.
Gato, Namahage and Chochin are very good 3*. You should work on those 
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Yes, that’s the best strategy. Work on getting one of each color leveled up. Feed them same color 1* and 2* heroes. You’ll get more experience points that way. It will seem that you’re not leveling them up fast but you’ll be able to max many teams at the same time.
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Namahage and Gato are arguably the best 3*s in their colors.
Chochin is no Balthazar but he’s still good, I think one of him is good to have. He has the stats and damage that let him do well in both raid tournaments and the Teltoc Guardians event.
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I have balthazar maxed with 1 emblem
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If you don’t have the mats, a good way to get them is to continue maxing three-stars for depth. With that depth, you can color stack against tanks in raids and Titans (for better scores and consequently, better loot). You can also perform better in alliance wars, for better loot. And some raid tournaments are limited to three-stars; a better variety of eligible heroes means you can better adapt to the rules and restrictions, resulting in - say it with me - better loot. Finally, you can ensure that you complete rare tier challenges and do better in a wider variety of class trials to get emblems for your four-stars when you do get the mats to max them. Show some love to those three-stars! Your four-stars will thank you.
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The short answer to that is BOTH. But read lots of posts on here to learn what one is better or worse and why. Practice with different sets as you farm to get a feel about your heroes, and go from there. WuKong is a MUST for titans, unless you have Tarlak or Ranvir.
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