Install a 24-bit audio card into your computer. A 24-bit audio card will give you the ability to connect studio-quality monitors to your computer for playback. It will also give you the ability to record at the same bit rate as Pro Tool studios.
Install a FireWire interface. FireWire interfaces come in many levels from entry to advanced. The benefit of using a FireWire interface is zero latency. Plugging a guitar directly into the sound card will yield latency when playing. This means you will not hear what you are playing until seconds after you play it. FireWire interfaces eliminate this delay which allows for easier playing.
Install amplifier modeling software. Recording directly to a computer without an amplifier means you must use amplifier modeling software to add depth and tone to your recording. One of the most common modeling software on the market today is Guitar Rig. It's being used in digital studios and gives multiple amplifier options as well as built-in effects modeling.
Install recording software. In order to record your music and render it into a file that can be shared, you must have recording software. This software can be purchased in several prices ranges from student-recording to professional-studio packages. Also, many computers come equipped with software. For example, Garage Band comes standard on Apple computers.
Set up studio monitors to allow for playback listening. Standard computer speakers are not voiced the same as studio monitors. Using studio monitors will ensure your recording sounds flat and unaltered by the speakers. This makes it easier to add reverb and other effects to the guitar track after it has been recorded.