Luckily for Kaito, wearing a hood in Aridden is not suspicious. Many people, from children to the elderly, wear turbans and long robes to protect themselves from the scorching heat.
The only thing that could give him away would be the scabbard of his sword or Korra's Shield, which is why he keeps them in his inventory as he walks around the city.
Now, the goal that was once just an idea in his mind has taken shape and in order to reach the top floor of the Celestial Abode, he'll have to give it his all and come up with a plan to get the best items and level up quickly. Obviously, unlike what he might do if he were in a game, he won't be able to risk his life and fight a creature dozens of levels above him.
First, Kaito needs to proceed calmly, evolve gradually and effectively, and then seek out greater challenges.