Originally Posted by jcfs
Question 1: DAC improves the sound quality when connected to both monitor speakers and headphones, right?
Answered by FallenAngel.
In that case, I will want the DAC to be:
Question 2: as neutral as possible...right?
I would say absolutely yes.
Question 3: Which DAC would suit my purpose? Budget: maximum 1000$; preferred 200-600$
You probably want a soundcard as you are posting in the computer forum.
For music production you need to know what features you want in the soundcard: inputs and outputs, latency, routing, asio, etc..
From the sound of it you have a bit of reading to do before you can get started with audio production.