If you’re just getting started with HiFi audio there are a lot of basics that can get very confusing if you don’t know where to start. Like "what do all these weird made up words mean?", "what the heck is a planar driver?", or "how do all these connections work?" Today we’re going to look at the basics of how to build a system, and what components you’re going to need to do that.
Input and Output Basics
To start out on the journey of building a system, you’ll need to learn the basics of input and output. For the most part, you’re dealing with either a digital or analog signal. A digital signal is pure data carried transmitted over a system like USB, S/PDIF, TosLink/Optical, Bluetooth, or HDMI/I2S. An analog signal is transmitted through any number of connections, like RCA, XLR, 3.5mm, 4.4mm, or bare wire. Analog signals can be line level (typical outputs from the back of a device like RCA or XLR,) below line level, usually an RCA cable with an added ground wire (like the output from a record player,) or amplified through a connection like speaker taps or a headphone jack.
In an analog system, you have some form of physical media, like records, which go in a player, that outputs analog signal that needs to be amplified for the intended output. In a digital system, you have either digital media storage like a CD, hard drive, or SD card; or internet streaming coming through WiFi or an ethernet connection, which needs to be converted to analog and then amplified.
The Core HiFi System Components
To move from some kind of source media to the final output, there are 3-4 components that you’re going to need: a source, a DAC for digital systems, an amplifier, and, of course, your headphones or speakers. Sometimes some of those components are integrated into a single device, while other times everything is separate.

Source
The source is what you get your music from. With an analog system, this could be a record player or tape deck, with a digital system it could be something like an iPad or smart phone, a dedicated streamer/transport, or a CD player. Whatever the root technology, it’s the thing that plays your music.
DAC
If you’re using a digital source, you’ll need to have a device to provide digital to analog conversion. Pretty much every consumer device you’d use has a DAC built in, but if you’re setting up a HiFi system, you’ll probably want to upgrade your DAC. Usually CD players, streamers, and digital audio players have DACs built in, but usually you’ll also have the option to use an external DAC.

Amplifier
In order to output the sound to headphones or speakers, you need amplification: the level of the initial signal needs to be increased to provide sufficient audio signal to physically vibrate the transducers in the speakers and headphones to make noise. There’s also an additional type of amplifier used specifically vinyl setups called a phono preamp. The phono preamp increases the level of output coming out of the record player so that it’s compatible with other standard audio gear.
Headphones/Speakers
Finally, you need a component to actually get the sound out. Headphones or speakers represent the final stage of audio output. Your headphone or speaker selection is going to be dependent on your amplifier, with different speakers and headphones requiring different connections and different amounts of power for correct operation.

Combining Components
Many components have combined elements, providing some or all the complete elements of a HiFi stack in a single unit. For example, the Eversolo DMP-A6 can store and playback music as a source and perform the digital to analog conversion, so all you need is an amplifier and headphones or speakers. Powered speakers like the Ruark MR1 MK3 have amplification built into the speakers, so you could make a complete audio chain with just a DMP-A6 streamer and Ruark MR1 MK3.
Another very common combination is a DAC/Amp Combo or an integrated amplification. Typically for headphone systems, a DAC/Amp combo takes a digital input and outputs to headphones, while for a speaker system, you’d call the same basic thing an integrated amplifier.
Any kind of integrated system or combo will still follow the same principles, just with the connections hidden. Instead of connecting a computer as your source to a DAC using a USB cable, the DMP-A6 internally connects the “computer” portion of the device that does the audio playback to the DAC portion.
Building Your Desktop Headphone System
With that in mind, we’ll take a look at some different systems that use different combinations of gear to figure out the perfect system for you.
Simple Budget Digital System
For something basic that sounds great, you use an existing device like your phone or computer as a source, get a DAC/Amp combo, and a set of headphones or IEMs. The Topping DX1 II offers very clean, accurate sound, with a good amount of power, and headphones like the ATH-R30x or HD569 will provide highly detailed, accurate sound. While IEMs like the Melody Wings Jupiter or Meze Alba offer natural sound with a little extra punch in the bass.

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Source: Phone/computer
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DAC/Amp: Topping DX1 II
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Headphones: Audio-Technica ATH-R30x (Open Back) or Sennheiser HD569 (Closed Back)
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IEMs: DUNU Titan S2 or Meze Alba
Simple Budget Analog System
If you want to stick with records as a primary audio source, “budget” costs a little bit more than digital, but you can still use similar principles to build a system. The Audio-Technica AT-LP60X offers solid performance with a built in phono preamp to make it easy to integrate into your system. You can use the same headphones as our previous selection, but you’ll need a separate headphone amp rather than a DAC/Amp like the Topping DX1 II. The iFi ZEN CAN v3 fits the bill quite nicely, and offers more robust amplification than the DX1 II.

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Source: Audio-Technica AT-LP60X
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Amp: iFi ZEN CAN v3
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Headphones: Audio-Technica ATH-R30x (Open Back) or Sennheiser HD569 (Closed Back)
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IEMs: DUNU Titan S2 or Meze Alba
Mid-Level Digital System
Moving that budget up a bit, you can get a little pickier with your components, and build something that elevates your audio performance. The Eversolo Play offers a load of features, including an optional CD-player, and a solid built-in DAC. While it has speaker outputs, for headphone output, you’ll need a separate headphone amp like the Topping A70 Pro. For headphones, the HEDDphone D1 is one of our all-time favorites, and the Dan Clark Aeon Core provides a very strong closed-back alternative. For IEMs, the Moondrop Variations is a great all-around pick for a classic Harman Tuning, while the XENNs Mangird Tea Pro offers a slightly more neutral alternative that’s still pretty fun. The Eversolo Play’s speaker outputs also give you the option of adding desktop speakers like the Eversolo SE100.

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Source/DAC: Eversolo Play
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Amp: Topping A70 Pro
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Headphones: HEDD HEDDphone D1 (Open Back) or Dan Clark Audio Aeon Core (Closed-Back)
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IEMs: Moondrop Variations or XENNs Mangird Tea Pro
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Speakers: Eversolo SE100
Mid-Level Analog System
The higher your budget is, the more the analog space opens up. The Pro-Ject Debut Evo 2 offers great performance while keeping the price well under $1000. At this level, you’ll want to separate out the phono preamp to get more options. The iFi ZEN Phono V3 offers plenty of options and excellent, low noise, performance. And then you can pair it with the same headphone options as the digital system. If you wanted a speaker option, you could drop the A70 Pro and headphones and go with an active bookshelf speaker set like the Triangle AIO Twin (which can also pair with your phone over WiFi or Bluetooth.)

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Source: Pro-Ject Debut Evo 2
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Phono Preamp: iFi ZEN Phono V3
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Amp: Topping A70 Pro
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Headphones: HEDD HEDDphone D1 (Open Back) or Dan Clark Audio Aeon Core (Closed-Back)
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IEMs: Moondrop Variations or XENNs Mangird Tea Pro
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Speakers: Triangle AIO Twin
High-End Digital System
While you can spend $50,000 on an absolute pinnacle HiFi system, we’ll keep it in the four-figure range for our purposes. The principles remain the same of course, so you’ll have generally the same types of components no matter what the price. The Eversolo T8 provides excellent standalone streamer capabilities, and paired with a DAC like the Chord Qutest and an amp like the Cayin HA300Mk3, you have a system capable of delivery world class sound to just about any headphones out there. For headphones, Austrian Audio Composer offers top tier technical performance with loads of detail and are very comfortable along with it. Or for a closed-back option the Dan Clark E3 is one of the best out there. For IEMs, the Thieaudio Valhalla and Campfire Audio Clara both offer a great balance of musicality and detail, with premium builds.

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Source: Eversolo T8
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DAC: Chord Qutest
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Amp: Cayin HA-300mk3
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Headphones: Austrian Composer (Open-Back) or Dan Clark Audio E3 (Closed-Back)
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IEMS: Thieaudio Valhalla or Campfire Audio Clara
High-End Analog System
As much as you could pay for a pinnacle digital headphone system, you could probably spend that on just a top of the line turntable. But, in the interest of keeping costs under control, we’ll go with something more attainable like the Pro-Ject XA B. To go a long with that, the Pro-Ject Tube Box DS3 B offers excellent sound along with the ability to output in balanced XLR, something most turntables and phono stages aren’t capable of. Add in the amp and headphone selection from our digital system, and you have a system that looks and sounds like a true top of the line audio system.
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Source: Pro-Ject XA B
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Phono Stage: Pro-Ject Tube Box DS3 B
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Amp: Cayin HA-300mk3
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Headphones: Austrian Composer (Open-Back) or Dan Clark Audio E3 (Closed-Back)
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IEMS: Thieaudio Valhalla or Campfire Audio Clara
The Bottom Line
There are nearly infinite combinations of headphones, amps, DACs, and sources that you can put together to create your system. While the function of each piece remains essentially the same, the fun of the audiophile journey comes from figuring out what sound you like, and finding components that help you develop a sound you love.
