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Yes, it's difficult for the first 30 levels. But by level 50 you'll have an abundance of resources.
The disappointing part of the game was, in order to upgrade every level I had to sell everything I found, and then fast travel from blacksmith to blacksmith buying up all the resources.
Every day I had to do this. Set aside time to blacksmith hop, which was very annoying and took me out of the game.
Levelling in this game is on steroids. It's hard to keep your gear up-to-date early on.
Just upgrade stuff at the levels when the engravings go up.
Upgrading every single level is a waste of time unless you really love collecting resources. (And if you are dismantling every piece of gear for resources, you are bound to end up getting rid of something that would have turned out to be way more useful than some wood and iron.)
Right now I'm at lvl 79 with all my gear at 70. I've got zero issues with that. With the abilities and other buffs my character is quite powerful to offset the disadvantage of having lower level gear. I'm thinking of upgrading my main gear at 80.