Dal Lake is best crossed by shikara. These flat-bottomed wooden boats are available all along Boulevard Road and at the main ghats; the fare for tourists is fixed by the local union, though you'll still need to state your destination clearly and agree a price before getting in. For short lake crossings the shikara is both practical and the most pleasant option. A two-hour shikara tour is the recommended introduction to the city.
On land, auto-rickshaws are plentiful and cheap for short hops around the city centre. They don't use meters so agree the fare before boarding; locals pay considerably less than tourists, and that's fine. For longer distances — to the Mughal Gardens, Shankaracharya Temple, or Hazratbal Mosque — hiring a taxi for the half day or full day makes more sense than negotiating multiple auto-rickshaws. Taxi stands are at the Tourist Reception Centre and near Lal Chowk.
Shared Sumo jeeps are the main mode of transport for valley day trips. They depart from fixed points near the main bus stand and TRC area on set routes to Gulmarg, Pahalgam, Sonamarg, and other destinations. They leave when full, which means early morning departures are usually faster. For places within the city, the route buses are cheap but slow and crowded. Walking is practical in the old city and around the Dal Lake promenade (Boulevard Road); elsewhere the traffic and road conditions make walking less appealing.