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Upgrades give you boosts in certain statistics. Each upgrade increases item level by 3. A random substat is also increased with every upgrade.
Upgraded gear is generally more useful, unless the item has a low requirement by nature (like FB sorc shields) or has a high variance in stats (like the eth Titan weapons). Upgrades aren't as useful for those with lower requirements because of the requirement to roll the perfect version.
Recycle Points
The item upgrader lets players upgrade their gear by giving the currency to an NPC. Upgrades can be applied to any kind of armor or weapons. However, the item used for the upgrade will be consumed for the duration of time and cannot be used again. Upgrades can also be applied to the enchantments.
The upgrader can be found in all major cities, and is accessible anytime to upgrade your gear. To ensure that your equipment is up-to-date it is recommended you visit the upgrader each couple of weeks.
Upgrades will cost more depending on the level of the item but they will always be cheaper than buying new gear. Upgrades such as upgrading a Benthic chest to ilvl385 will cost you 20 recycle points. A similar item will cost you 105.
Valorstones
Upgrades are functional items that are used to upgrade weapons and tools, armor and accessories. They can be purchased by players through NPCs who sell upgrades for items in exchange for various currencies, and can also be found in random treasure lists. Once purchased, an upgrade can be applied to any weapon, tool or armor. The button will show the item's next level of upgrade, if there are enough materials.
The cost of upgrading is based on the slot of the item and current item level and the weapon's price is higher than bracers or gloves, for instance. Each upgrade cost 15 Flightstones and a variety of crests, with certain upgrades having a discount to lower the cost of the Flightstones or the crests used. After an item has been upgraded to a certain degree it is able to be downgraded and sold to the upgrader at a lower cost.
Item upgraders can be found in a variety of locations on the main island, as well as a few outposts. The NPCs provide an upgrade discount and a chance to obtain a new upgrade recipe. The discount for upgrades increases according to the number of items being upgraded, and can be boosted by having players complete specific achievements or complete quests.

In contrast to Cromwell in Baldur's Gate II, there is no item upgrader available in the beginning of Icewind Dale. The NPCs that can assist with upgrades are available only through a variety means. This is both a benefit as well as a disadvantage.
In Season 3, many new features were added to the upgrade system. After a player has earned an upgrade to a specific level of an item for a specific armor slot, upgrading other items to that same item level will be less expensive, even in the event that they belong to a different gear set.
The discount is available to all accounts. The amount of Harbinger Crests needed to upgrade is cut too, but it is only available after certain milestones are achieved.
Crests
Players have a variety of choices when it comes to upgrading their gear in WoW. They can use Flightstones, which are a general upgrade currency that is available to everyone, or crests, which are more specific and consumed during upgrades on specific levels of items. Crests are an important element of the Dragonflight Gear Progression System, which was introduced in version 10.1. They are available in four ranks.
First, you should know that the crests can only be purchased for equipment that is of a certain rank. Each rank has a different upgrade path. The simplest and simplest upgrade is 15 crests. The most complicated upgrade can require up to 20 crests, depending on the type of equipment being upgraded.
Players can earn crests by completing content of the appropriate level, which means walking around and doing outdoor activities for lower-tier gear, dungeons or raids of any difficulty for higher-tier items or Mythic+ dungeons or heroic raid bosses for gear that is used in the endgame. Crests can be exchanged at an upgrader NPC, like Cuzolth in Dornogal or Vaskarn in Valdrakken to get the appropriate upgrade pathways and steps.
The new currency system isn't difficult to use, however it does bring some modifications to the upgrade process. For instance, when a piece of equipment reaches the highest upgrade level of any rank (Explorer, Adventurer, Veteran, Champion, Hero, or Mythic), it won't need Flightstones to be upgraded. This change allows players to upgrade their gear to the highest level possible for all their characters rather than relying on seasonal loot.
It's also important to use crests with care, since they are only used for one purpose. It's best to put your Whelpling-rank Crests on the top-quality equipment you can locate, and keep Drake and Wyrm Crests for the next set of upgrades. This is especially relevant for trinkets and rings that occupy multiple slots on the character, which will only be able to take advantage of the account-wide discount when all slots are filled with high-quality gear.