Have I let it go too far? Should we just be friends or see where this takes us??

So I met this guy about 8 months ago, we were friends and spent time together in social gatherings for about 6 months. 2 months ago we started talking quite a bit through text message, on the phone and spending time together.
This guy is incredible, we have amazing chemistry and him and we have great communication as well. We have found it extremely easy to open up to each other and I feel like we could talk about anything comfortably. I am unbelievably attracted to his personality and I am physically attracted to him as well, but I don't find him good looking and that bothers me somewhat. But when we are together I completely forget about that because he has so many wonderful traits that make me attracted to him.

I recently just got out of a 5 year relationship and have explained to him that I won't be ready for a relationship for awhile and he understands that. The problem is, is that talking with him and being around him it is so easy for us to get caught up in the moment. Realistically, with me not being ready for a relationship, we should just be friends, but our texting is very flirty and when we are together we have been affectionate with each other and in the moment I love that but I know that by doing so I will rush into something that I'm not ready for.

And recently I have been having this fear, maybe because there are feelings invested now. But I am afraid to lose him, not in a boyfriend sense, but he is this amazing person that I want in my life and couldn't imagine him not in it even after a short amount of time knowing him. I feel like I would almost rather give up the potential relationship we could have for just a wonderful friendship. Not that I don't think we could have a great relationship, I just feel if something were to happen we wouldn't be able to be friends afterwards and that's not what I want.
I have never had this feeling before and it makes me question my feelings for him. Maybe I'm not falling for him in a "boyfriend" sense but I'm falling for our friendship, is that even possible?

But my problem is, how do I tell him that I want to revert back to being friends after we have already been acting like more than friends? How do we backtrack like that and not expect to easily fall right back into that place because it feels so right when we're together. And I know that he is ready for a relationship and he does want one with me, but I don't want to hurt him or him not be able to be just friends with me because of his feelings.

So what do you guys think? My mind had been all over the place. I don't know if I should just try and maintain only a friendship with him or if we should try and see where a relationship goes when I'm ready.
And how do I explain this to him? Like I said we have amazing communication and I don't have a problem telling him all this but I feel like I don't even know what I want yet. And when I talk with him I want to be sure of what I want.
Any opinions or thoughts would be extremely helpful.

Thanks!!