How to get into high end digital? (Feeding a DAC)


I am looking primarily at the Schitt Yggdrasil or the Topping D90.
  • How does one feed those?
  • I am assuming any sort of CD transport would output the bit stream?
  • or… they get saved to file and played from some media player into the DACs.

Some example of what is commonly done would be great.

The system currently consists of:
  • TT —> Audio Research PH2
  • An old Nakamichi 5 disk CD player
  • TV
  • Audible Illusions line stage (New tunes on the way, but it still sound OK to me with the old tube in it)
  • Prima Luna (with GoldenLion and TS KT-120 one the way… and I might I’ll get the VTL mono blocks 100w/ch serviced)
  • Vandy 2C and Vandy sub

I also have a Home Theatre pre, which is Roon capable, on the way… So that maybe does some of this for me as well? 

But to be totally honest, the digital side is a bit of mystery to me.
I have always thought we plug in a CD player and the signal comes out. (Maybe with some nuance in DACs, clock jitter, and filtering to separate the higher end from the lower end products.)
128x128holmz
A set up like the one outlined below in the second bottom paragraph should fit in correctly with the Title of the Thread and the OP's inquiry.

From descriptions offered to myself following inquiries, it is certainly  going to be a very different experience and will fit in the OP's requirement,
 "But high-end to me would be something that sounds good and does not sound like it is obviously coming from a CD player."    

"Well I was not thinking much of budget, but less than 10k."
I think a prudent approach can get you to this level of set up with quite a few $$$$'s left in the coffers, leaving enough for a HQ Player Subscription for many years if this method of replay is investigated and becomes a High Up the List choice.
 
I have followed various user experiences around this method of replay during the Lockdown of 2020 and after a long hankering to experience the set up, it is looking most likely I will be able to have a demonstration of the set up later in 2021. 
I am taking a friend along who is a very adept EE and Digital Enthusiast to the demonstration, I am hoping the EE develops a curiosity for this method and carries out a build, this will make it much more accessible for myself to experience, as at present the Trip will be between 300 - 500 Miles round Trip depending on the venue.

A DSD decoder set-up as a source with a 'Valve DAC'. used 
with HQ Player upsampling to DSD from PCM FLAC files and DSD256 Tracks.

A Thread covers this arrangement and other very similar set ups on the DIY Audio Forum

The OP finally gave us a budget—apparently up to 10K—after multiple requests to do so in the past week.  He wants his music “not to sound like it came from a CD player”.  He has a tt from Audio Research.  I have no idea what that costs, but I haven’t seen AR equipment at WalMart recently.  He is looking at DACs—the most important determinant of digital sound—that range from 8% to 25% of his total budget, and probably less than his tt.  He has now decided that an AVR will meet his needs.    IMO he should keep buying lps from Barnes and Noble that cost $50 each and usually are digital files that have been embedded in a slab of petroleum.
  Although I feel like this is an exercise in futility, I will share what I do. I have a DAC3 from Bryston.  I use a Melco N100 as a NAS/Player.  I rip my CDs with a Melco 100 ripper/disc transport.  The music sounds the same to me whether played from the transport or the N100.  It is simply the best sound that I have ever had, much more detailed and open than using my Oppo 105 or a Sony 5100 as a transport into the same DAC.  The Melco/DAC combo can probably be had for 6K.  Another $5 for a decent app controls the whole thing from a phone or tablet and allows Tidal/Qobuz integration and Internet Radio.
  All that ask from the OP is that before he issues some proclamation on the merits of digital vs analog is that he not compare apples to oranges.  Don’t compare your Neiman 
Marcus analog rig to a Costco digital setup.  Otherwise, good luck
  
@mahler123 I was asking for input, but your tretice seems like I have offended you?
@holmz                 
              Your Thread Title and OP make it very clear that you are inquiring and looking to have a input to help improve your understanding of the requirements.
If that is being shown as difficult to embrace by a contributor, it is not really something to be concerned about.
A more compatible Mentor will show up.