Microphone, DI and Modeler
To record an electric guitar, there are three basic ways to get the signal into the computer. They aren't mutually exclusive and deliver different sounds — the choice shapes the result more than the price bracket of the gear.
Microphone in front of the amp — The classic route: a microphone picks up the real amp's speaker. Delivers the authentic sound of amp, cab and room — but it has to be loud, the room sounds along, and the mic position is decisive (see rec-2). Needs an amp, a microphone and a halfway usable room.
DI (Direct Injection) — The guitar signal goes straight into the interface, with no amp. Pure, that's thin and unamplified — but as a dry track it's valuable: it can later be sent through amp simulations or, via re-amping (rec-5), through real amps. Many record DI additionally, as a safety net.
Modeler / amp sim — The cab-simulated output of a modeler or an amp plugin goes directly into the DAW (see the "Amp Modelers" topic). Quiet, repeatable, no miking — the most practical route for home recording.
Framing — No route is "right": microphone delivers authenticity and room, DI flexibility, modeler convenience. Many combine — for example modeler and DI, to keep all options open. For home use, the digital route is usually the quietest and least stressful start.