I just started playing Nioh and reached the blacksmith for the first time. I now realize there is a whole crafting component in the game that I didn't know about. Before that, I would just donate all my extra loot at the shrines to get some Amarita.
At this point, the options are
Sell all the loot for coins
Disassemble loot in crafting components
Donate look to shrines for Amarita
What would be the best thing to do with loot? I feel like Amarita and coins can be obtained just by killing enemies, while crafting components can just be amassed by breaking down loot. It seems though that everything that can be crafted by the blacksmith seems like crap at the moment.
Donate them to Shrines to earn Amarita, you can always earn them anywhere anytime
But for craft materials, they are hard to come by and you will burn them through when you want to craft a good piece of equipment. I think there is a random factor comes into play if you are crafting a piece; the chance of getting an epic piece is very low so you will need to try doing it a lot of times.
There's enough debate in the forums where I don't think it truly matters. What I've been doing (right or not) is at the beginning of the game, I'm donating to the shrine to help with leveling and to move towards the donation titles. After I hit the titles, I'm selling everything below blue and disassembling the rest because the game throws amrita at you after a certain point. I may start selling items if my coins are low.