Instructions
Defeat some enemies and obelisks to collect runes. There are a number of different runes available, and they drop randomly when you defeat enemies.
Enter the "Cyberspace" portion of the game, which is the only place you can find "charm" items. Collect some tier-one charms. You can keep a total of 22 charms, including the two you have equipped, at any time.
Equip a charm to the "Charms" slot on your character's "Equipment" menu. Once equipped, it will activate a quest needed to activate this rune. The quest will be randomly generated, and will be different for each charm you equip.
Complete the quest described on the charm to activate it. You can view the quest on your "Quest" screen. When you have completed it, return to the Charms menu.
Locate and insert the runes depicted on the charm to complete the tier-one charm. Repeat to make a number of tier-one charms.
Collect and equip a tier-two charm. Activate it in the same way as before. Complete the quest, and then insert charms, instead of runes, at this tier. You have now activated a tier-two charm.
Repeat the steps of collecting a tier-three charm, activating it with a quest, and then inserting the required charm tokens to complete the tier-three charm.