I work in digital fairly regularly, in fact lately, I work more often in digital than traditional.
Not too long ago I decided to get the Wacom Cintiq 16, and I couldn’t be happier. It’s a more affordable version of the common Wacom Cintiqs & a smaller size but certainly works well enough for me.
I have a full review on it here, if you want to know more.
As for the software, I work mainly with Photoshop.