Digital portfolios allow users to conveniently display and share a collection of work through electronic files, photos, links, and blogs. The document provides instructions for setting up a free digital portfolio using Blogger. It recommends evaluating your goals for the portfolio and preparing your content before creating a Blogger account. Key steps include organizing the page layout, uploading a profile photo, adding content through the share bar, customizing the design template, and sharing the portfolio publicly. Following these steps will guide the setup of a basic digital portfolio on Blogger.