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As for crafting items, they are useful in leveling up your crafting skills.
Deconstruct any weapons or armor you find to increase your crafting masteries on one of your characters (no reason to create special character-crafter but yes, it takes a lot of skill points). ED: also research traits.
You can sell those iron ingots to vendors, they are mostly useless. On first level of crafting skills you get more materials from dailies than you spend.
Alt characters + banking addon (+crafting addon for dailies - dolgubon's lazy writ crafter). Setup banking addon for different characters: to put anything into bank, or to get something from bank, or to keep full stacks of something without automation. (I use Personal Assistant addon)
+Wait for free ESO+ trial week that will move your materials into crafting bag. it happens twice a year. (Next trial can be in May ot June)
You can buy storage chests for master writ vouchers but it is not very much storage: 60*4 +30*4 = 360 slots in total. And you need to be master crafter to be able to do master writs (or pvp player).
Also, you can slowly upgrade your bank space as you gain gold through the game.
I don't recommend hoarding many of the basic materials that you can get anywhere. Have some to help you level your crafting if you want, but there is little reason to keep stacks of most items.
The only thing I tend to hold onto are the items that can increase certain attributes. Even those I only keep the more rare items.
Mind you, this is just what I suggest. Play like you want.
Another tip for playing without the craft bag is to just keep materials you actually need. Don't stockpile food items that aren't part of your daily writ requirements. Don't stockpile common trait items. Don't stockpile the green or blue enchanting runes.
With a fully upgraded bank, I can store 1 stack of all the ingredients for my provisioning writs and my preferred choice of food, 1 stack of every alchemy ingredient, 1 stack of every rune, 1 stack of each fishing bait, 1 stack of every furnishing material, 2 stacks of the highest tier crafting mats, 1 stack of each green/blue/purple/gold upgrade item, and the leftovers spots I let fill up with uncommon/rare trait items or food items. When I get a full stack of something and can't deposit to the bank, I sell 100 of them. If that stack of 100 items won't sell for at least 1,000 gold it gets sold to a vendor and I reconsider whether I even need to stockpile it.
That said, you will occasionally need random food or trait items to finish writs. What I do is take advantage of ESO+ free trial periods to collect materials. That's when I actually open crates and bags for any food item and let common trait items accumulate. I typically get more than enough to hold me over for 6 months until the next free trial.
The crafting bag is nice to have, but it just lets people accumulate all sorts of junk items they're never going to use. For instance, there was a guy in chat the other day trying to sell the 40,000 lemons he'd acquired over the years... :P
Provisioning also seems deliberately designed to clog your bank, somewhat true of alchemy but less so because there's fewer of them and they're more valuable to sell.
Stash furnishings in an unused house if possible. Mule characters are helpful too.
Writs are a good way to make some gold so keeping tier 1 and max tier materials is a good idea (for toons that don't have crafting maxxed and those that do, respectively) all the intermediate materials are pretty much junk.
Use or discard daily rewards like poisons potions and meals, they're nothing precious and again can really clog stuff up. I think I had like... over 7000 poisons at one point?
Step2: max out storage in home/bank
Step 3: only refine when you have ~50 slots open so you can delete all the garbage that gets generated all at once and save time
Step4: Apparently don't play the game because it will keep swamping you with garbage -- see the Anniversary Event
Max your Bank Space (240 slots)
Begin doing your Crafting Writs on each of your characters to accumulate Master Writs where you can gain Writ Vouchers, with these Writ Vouchers you can purchase Storage Chests for your Home. Or you can save up your Gold and buy these Storage Chests from someone selling Crowns and have them Gift them to you.
4 Small Storage Chests (120 slots total)
4 Large Storage Chests (240 slots total)
So essentially, even if you have only 1 character but have all of these things, that would give you 800 slots to store stuff, which is pretty good for not having ESO Plus.
As for the storage of low level materials, I would recommend just keep 3 or so stacks of each material as you level up, because you never know when you might need them for either Writs or if you make a new character and you'll now be able to craft gear for them ahead of time because you have the required materials. They come in handy more often than you think.
As for the excess, probably best to just sell it to a Merchant. However, if you have the "raw materials" then you can sell those for more Gold in Traders. Stacks of "raw materials" go for a decent amount of Gold, not a lot but much more than what you'd get if you sell them to a Merchant.
It doesn't have to be difficult to manage your resources in ESO, it just takes time to get it all sorted out to where you can easily navigate through them all, if you don't have ESO Plus.
just stop collecting everything, disable auto loot and delete everything that is low price on market (get TTC addon and check prices), done
forget about doing daily writs, especially on more than 1 char, gold isnt really needed in this game
if you waste too much time sorting your inventory like an idiot just get eso+, otherwise waste of time