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Instead of an external DAC and Coax Cable, why not buy a digital player...

With a digital player, you don't need a digital coax cable. You can simply plug your external USB hard drive directly into the digital player and then use analog cables from the player's output to your preamp or your power amplifier.

I use a FiiO R9, which has eight DACs running in parallel on each channel. It has both balanced and unbalanced analog outputs. I'm using balanced XLR cables from my R9's outputs to my preamp's balanced inputs. The R9 sounds as good or better than any other DAC or DAP that I've ever heard, yet it costs only $1,500 from Amazon. It's probably the most economical high-end DAP/DAC available anywhere.

If you want the very best sound quality, listen to DSD256. That's my favorite digital format and I have just over 400 albums in DSD256. The FiiO R9 will play all two-channel digital formats up through DSD512 directly from an external USB hard drive.

I don't know how much you intend to spend on an external DAC and coax cable, but the FiiO R9 is my choice for the best sounding and most versatile high-end digital component available anywhere. Check out its description on the FiiO website.

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