When you start picking up loot that you do not need, you will want to salvage or disenchant them in Path of Exile 2. Your inventory slots will fill up pretty fast every time you boot up a new instance or area.
So inventory management is key, but don’t go dropping away the gear you don’t need or not pick up an item because you have no use for it. There are better ways of disposing of unwanted loot in the RPG, and the guide below goes over just that.
Disposing of unwanted loot in Path of Exile 2: Disenchant, Salvage, and Sell

Before you seek to do away with an item in Path of Exile 2, the first thing you will need to do is to identify it. You can do it by using a Scroll of Wisdom or use The Hooded One, who can identify multiple items in one go.
The Hooded One can is unlocked after progressing through the main story and reaching halfway through Act 1. Scrolls of Wisdom, on the other hand, can be purchased for 25 gold from Una in Clearfell Encampment or obtained as a drop by beating mobs or bosses.
Once you identify an item, its stats will be revealed giving you more info on whether they will fit your build or not. If they are something that you want to get rid of, here are a few things you should be doing after heading into a town:
1) Disenchant loot
Every town will have an NPC who will be able to disenchant unwanted gear for you. Anything that has a blur or higher rarity can be broken down for materials. These resources can then be fused and used to upgrade other pieces of gear.
However, do keep in mind that disenchanting will destroy the original item and the materials you get from it will upgrade a gear to be the same rarity as the original gear.
2) Salvage unwanted items
To salvage items in Path of Exile 2, you will need to head to a Salvage Bench in a town. Once a gear is salvaged you will get an Artificer’s Shard which can then be fused to make an Artificer’s Orb.
Artificer’s Orbs are used to put on gear to give them a Support Gem slot which is a core part of min-maxing your build for the late game.
Salvaging gear will destroy the original item as well.

3) Sell loot
If you are in need of some quick gold, then the best way to dispose of unwanted loot will be to sell it off to a merchant. However, it’s sort of like a last resort and is not something that is readily advised.
Note: If you have gotten your hands on a gear that you have use for in the later stages of the game but not right away, it’s important that you do not get rid of it but rather stash it away. Stash is shared with characters of the same league so keep it aside till you slowly start making that late-game Hardcore build.