Hegel internal Dac - USB or Coax or ditch the DAC altogether? Exploration on a budget!

Great post!  I’m exactly in the same boat. H80 and relying on internal DAC and connected via USB from my ThinkPad. 

Based on my limited research, I’m not sure we can find a DAC that’s going to be that much better than using the Hegel.  I might be wrong though, as there are tons of reasonable and highly reviewed DACs now...

My source is Apple Music so even if the coaxial can accept higher resolution files, I’m not sure I can benefit from that. I signed up for a Tidal trial but haven’t used t yet...

So I’ve been trying to figure out whether to:
1. Upgrade my usb cable and forgot about further tweaking;
2. Go with one or more USB regeneration/purification products; or
3. Go with a USB->SPDIF converter. 

All options would still need upgraded cables, and that means cost for the cable and the regeneration or conversion devices.

I hope soemone with more more knowledge and experience responds to help us both! 

Thank you, janehamble and auxinput. 

I think I’ll go down the usb -> spdif converter path.

Thanks!

As an update on my system: I ended up buying the Ifi iOne, a premium after-market USB cable (used Audio Sensibilities), and a decent quality isolating surge suppressor.  

I think it sounds better than when I was going from the computer straight into the H80's USB input.  I'm not an experienced audiophile, but I think there's more detail, rounder/warmer sound, and it's more engaging.  But objectively, I've also taken three improvements in a single step, so it's tough to say what exactly caused which improvements.  

I have not done an A/B comparison (no time)...so some of the improvement may be psychological..although I don't think all of it can be.  

I'm guessing the iOne is providing the biggest benefit, followed by the USB cable, and then the surge suppressor (if it all).

I am happy enough with the sound to move forward with my next two planned upgrades: a much better SPDIF cable (right now, I'm using an old cable that probably cost $20...?) and I'm going to make a power cable.

Hopefully, I'll recognize some gains with those two things.  But I'm also guessing that I'm nearing the point of diminishing returns.

For reference, I chose the Ifi iOne over the Schiit Eitr, because the iOne seemed to be more versatile (e.g., it has Bluetooth capability) and it didn't require a separate power source.  Unfortunately, I couldn't find any comparison of those two units.  There are other options from other manufacturers, but I wanted something from a company that had a website and a unit that claimed to clean/isolate the signal, 

My rough calculations showed that I could have gone the path of improving the USB signal (probably using the Remedy Reclocker recommended by Darko), but then I would still be inputting an improved USB signal into an input that is apparently not as strong as the other digital inputs.  And I think this approach would have cost about the same as going with the Ifi iOne (if I bought a used Remedy Reclocker).

I did a bit of research into finding other external DACs. But I think that would have extended my budget even further, and I couldn't find enough information to confidently make a choice.  

Hope this helps --