A summary of how to digital for noobs:
step 1) Get a Bluesound Node. It’s an all in one with a better interface than most. You can get your feet wet with a minimum of fuss. It’s compatible with nearly all the streaming services so you can try them out and find your music. There are other more labor intensive options if you have a DIY bug, and better sounding ones if you’re looking for one and done. Overall, it’s a good start.
step 2) Get an external DAC. This is where the magic happens. Some research and trials may be necessary to match your taste and your existing system. Consider buying used until you narrow it down a little. Consider starting with lower end models and then moving up the line when you find a manufacturer you like.
step 3) Buy a better streamer. Now you know enough to know more of what you want. Are you going to have a big library? Do you want to try Roon? Do you have multiple zones? It might even turn out that the Node is good enough for your needs, except you’re an audiophile and probably can’t control your urge to upgrade.
step 4) Buy an expensive DAC. Now that your streamer is up to snuff, you’d be doing yourself a disservice to use a lesser model. Consider master clocks, linear power supplies, and exotic cables. You’re in deep now and you want to squeeze every last bit of possible sound quality out of digital.
step 5) repeat step 3 and step 4 as needed. You may want to alternate with improving the other parts of your system so everything stays “in balance”. Enjoy. This is now the rest of your life.