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The Beast Realm Krystal is the first quest after the tutorial.

You start out in your Adobe.

Head downstairs and you will see your Ka-Ra (SpellForge).

It already has the KrabbitWorld and Realm of Light Krystals in it from the tutorial.

Each character you play from here on must build their own SpellForge.

When you're ready, head outside.
Go to the Inn to get the Beast Realm quest from Ogre.

Explore the area. There are lots of barrels and crates to smash and chests to be discovered.
When you're ready, head up the path past Lord Kindarel's house to the forest entrance.
Once in the forest, you will see a bunch of monsters on your mini map in the upper right corner.

You must defeat all the monsters before you can collect the Beast Realm Krystal.

Once you get the Beast Realm Krystal return to your Adobe and put it in your Ka-Ra.