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Crafting is a way by which you can create items. As you craft items, more advanced items become available. To unlock better tools and weapons, you'll need to have mastered making the weapon before it, essentially progressing through the tiers of a particular weapon or tool. This leveling system makes it similar to skills, but it is not considered one of them, although you will gain experience in different skills based on what you craft.
Crafting begins with gathering resources that can be acquired by hand:
Following which, players can start crafting items and tools in the Basic Survival crafting tree.
Each resource node has a secondary material when right clicked with tools.