There are over 5,000 different types of lizards in the world. Lizards are cold-blooded, or ectothermic, animals that bask in the sun to warm up. Their skin is covered in scales made of keratin, the same material that makes up human fingernails. Both bearded dragons and Chinese water dragons eat insects as carnivores. Bearded dragons live in desert habitats while Chinese water dragons spend time in trees and near water.