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Upgrade away, and then some more.
Your focus should be on the bonds and stats, upgrades do not increase custom stats, so you'll have to save equipment with good stats to swap them once you find equipment with slots, or master equipment. So if you get a +10% stat in a weapon/equipment, better hold on to it for later to swap that stat to your desired equipment.
So yeah do not upgrade.
Build up resources. Eventually when I see stats I want with a decent percentage I'll stick it in storage. But just ignore the majority of the system and swap to whatever is highest stats and most useful stats until end game where I bother to engage the upgrades.
I have hundreds of those materials and nearly 700K worth of gold sitting in my inventory.
Yeah I've been getting some incredible equipment just from running into random people out on the roads. The random encounters that have those banner looking symbols over the NPC. Not to mention the stuff I get simply going along with the story so far.
Good point.
You don't need to bother with upgrading until you get red weapons (midnight difficulty, post game), the game throws gear at you hand over fist so upgrading is useless until you reach that point. Always disassemble equipment anything below red, lock the things you want to use.
For context, I'm level 75 and have yet to upgrade any equipment.
There is no point to upgrade early.
After you finish story and unlock the hardest mode, it'd take few hour to get from level 50 to 100 by grinding coop bosses fight. You'll get best gear from that coop bosses fight too.
The max level is 100! and here I was thinking I was high level at level 35 lol