I'll second everything that Asmus just said. And I'll add some stuff too:
In this sport, we sometimes say that competitions are just an excuse for people to get together and play alot. That is, the main reason for a competition is not necessarily the competitive events themselves, but, all the jammin' we do all day and night before and after the competitive events. And also, the partying...

Competing is also fun. Some people like it, some people don't. Some people are good at it, and some people aren't. Some of the best players I've ever known almost never actually competed, but... they traveled all the hell over the place going to tournaments and just jammin' and partying and hangin' out. There's nothing wrong with competing. I like to compete, and almost always do, but, its just a small part of why I go to competitions. As for yourself, you might want to watch one competition before actually entering one. I did this, years ago. I wanted to compete, but, never having seen an actual competition before, I thought I'd like to see one in order to better prepare myself for when I did actually enter a competition. On the other hand, one of the things I learned from my first competition (the first one I entered, that is, not the first one I watched) is that, no matter what preparations you might make for entering a competition, you probably cannot actually be ready to compete until you've already gotten some experience competing under your belt. In other words, one important component of preparing for a competition is having had previous competition experience. So, you might as well just jump right in and start getting that experience.
Good luck. And have fun (no question about that, you're sure to have a really good time) -- one other thing we sometimes say in footbag (well, some of us old-timers, anyway) is "Most Fun Wins." In other words, if you go to a competition and you have a really good time, you're winnin', even if you finish in, like, last place (actually, these days I'm often pretty out-of-practice, and everybody else keeps getting so much better, that my goal is often just to NOT finish in last place, and that, to me, is like a whole other kind of winning

)