#1
For awhile I was satisfied with what I was doing, all my cheap work and what not, but now I actually want to start recording better. I need help on how to do this. I don't know how I should be recording at all.

The way I record now is, my line out has a cable connected to my computer, and I record with Audacity. All cheap stuff.

I needa know how to record with better quality and the such. Should I use a microphone to record it instead? How do professionals do it? How does ANYONE do it? Help me out please I'm a noob
#2
I would recommend investing in a better DAW to begin with, Reaper is great for newer people. Depending on what type of sound you are going for, you can find a number of great guitar and bass emulators as free VST downloads that can yield professional results.

Try searching Nick Crow, Acme Bar Gig, and Lepou. They all offer great guitar amp emulators for free. You will also need speaker impulses if you take this approach, which can be easily found as well.

If you want to take the micing approach, which I would recommend more, invest in a few basic mics such as an SM57, and possibly some condesor mics in the future.

It's definitely a learning process, but well worth it.

Good luck man.
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Yeah, I have fond memories as a child of fapping to a porno with my close friends before sitting down for a nice relaxing evening of Runescape.
#3
Using a mic is actually better but a line in isn't bad. Place the mic as close to the amp as possible and a smaller amp is better. To make it sound professional you will need effects like chorus or reverb. I don't have those effects on my amp I use Adobe Audition to for the effects.
#4
Eww, it sounds like you're recording through the mic/line in port on your computer. Usually, unless you spend a lot of time fiddling with it, doesn't produce a good sound.

What you should do is spend a few bucks on an audio interface. Depending on your budget, you'll most likely want to drop $100+ on one. This here is a good basic one to get you started.

This will help your sound a ton, allow for a ton of extra effects for processing and sharpening the tone and just help you a lot in the long run.
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#5
you'll need an interface. check out the M Audio Fast Track. Line 6 has some good ones too for not too expensive. make sure it has at least one mic input and phantom power. then look to invest in a decent mic. if you're just miking up your amp, i'd look into a decent dynamic mic for starters (not that they're better or worse than condensers, but for starters that's where i'd go).
if you're doing vocals too, i'd look for a decent large diaphragm condenser that can handle both jobs (unless you want to shovel out a few hundred to get 2 mics).