Many ways to Roma
Digital audio is samples at a certain sample rate.
Very common is “CD quality” 16 bits words with a sample rate of 44.1 kHz.
Almost all audio for download is 16/44.1, be it FLAC/MP3, etc
Today you can also buy Hires recordings, most of the time 24 bits and a higher sample rate.
The DacMagic has a USB input. It accepts 16/48 max.
If you happen to have Hires e.g. 24/88, it will play over the USB but JRiver must downsample it to 16/44.
If you use Toslink, the standard allows for 24/96 max. So you can play higher resolutions at their native sample rate.
Now if you buy 24/192 again it must be down sampled to 24/96.
A M2Tech Hi-face can play 24/192 at its native sample rate.
An obvious first question is if you happen to have any Hires recordings.
If not, don’t bother.
A simple experiment might be to connect your PC to the DACMagic both over the USB and Toslink. You can simply switch between the two using JRiver.
Choose the one you do think sounds best.
If you don’t hear a difference, choose the one you think most convenient.
Maybe my website is of use as it covers the basics of computer audio
http://thewelltemperedcomputer.com/Intro/Starter.htm