Pick up looted items from monsters holding attack button.
In the initial city (Aiorum or Fort Magul) there is a portal, use it to get teleported to the capital city (Drezia or Navisco) of your faction.
In the capital cities there is a banker where you can deposit items. This items will be associated to your account so you will be able to withdraw them with any of your characters.
To Sell/Buy items, use the blacksmiths of each city simply drag the items From/To your inventory To/From the blacksmith inventory.
Items are divided in 4 categories:
Normal (grey), Magic (green), Rare (blue), Legendary (orange).
They drop with random stats of Power, Vitality and Speed.
Once you reach lv 20, take a boat in the capital city to carry on with your adventure.