Got a Node 2i, what's next?


So, I admit that I'm not much of a digital guy.  I ordered an Node 2i for the main HT system mostly for Amazon HD.  Much better than roku --> Denon AVR-X3600.  I liked it so much I ordered another for my previously all analog 2 channel system.

It's not bad, and convenient. Not even close to vinyl on the same release and level matched recordings, but then again, I didn't expect it to be.  I keep reading about how you can easily improve the sound by adding in an external DAC.  Here's where I get confused.

I don't want to spend a lot on a DAC, because at best it's a secondary source.  I'd feel comfortable in the $500 - $1000 range, but I'm really confused over the options and how they relate to sound quality.

First, r/2r vs I guess delta sigma?  What are the sonic advantages of either, there are widely differing opinions there.  I understand how each works from reading around, but how does it relate to sound quality?

Second, multibit vs whatever else.  Same basic questions, what are the basic sound characteristics of each?

Third, oversampling or no.

And lastly, what bitrate/bit depth is considered adequate?  24/192 seems to be standard but some dacs only have 24/128 over optical.  Will this make any difference real world with HD streaming?  I also have an old NAD cd player with coax digital out I might want to hook up for kicks.

I've researched three so far, the Denefrips Ares II, , the Schiit offerings below $1K, and the Cambridge Audio DacMagic 200M.  I would like to have balanced outputs to keep the digital circuitry as far away from the analog stuff as possible.

Thanks in advance for your answers.



vinylzone
I also had the Node 2i in my system, but was quite disappointed. Sonically, it was outperformed by my first-gen Dragonfly USB-DAC. I briefly considered adding a DAC, but instead opted for a full replacement (returning the node 2i) with a Cambridge Audio Azure 851N. Dual-mono DAC construction, streamer, DSD, balanced out, about EUR1.5k. 
I was in the same position as you. Mainly a vinyl guy but wanted a digital front end as an option to hear stuff I love but don't have on vinyl. I got a node 2 and thought it sounded ok. I then went fairly nuts trying to decide on a DAC. I initially ordered a Chord Qutest but it took forever to ship so when a Schiit yggsrassil analog 2 came up on one of the used sites I jumped at it and cancelled the chord. Overall, I've been very happy with the results. Has nice mid bass response and does not sound too bright. 
Even If you like the Node 2I you have to deal with the interface , Yuk
Ive been doing my homework on DACS and you forgot to mention R2R ladder DACs. Im probably going to get that Denafrips ares or Buy american and get schiit maybe even the YGG and be done with it  ,, then I can come off my phone thru Tidal HiFi over lightning to USB keeping it digital for the 9Ft run to the outboard standalone DAC then my receiver. I think I understand DACs now, its for the most part a big Filter because there's DACS on every phone the size of a spec  but to give it the spaciosness, Airiness, chocolate mousse flavor , Every DAC modulates the sound because I dont think it was actually recorded the way Audiophiles are trying to get it to sound like, Audio nirvana is when you have separation , depth spaciousness like a 3d hologram and thats why DACs go from being a sec on a Phone to a cd player size cause theres allot going on not just 00001111's to analog but filtration on top of modulation only then can your amplifier amplify it and your speakers reproduce it. I was lost for a while on DACs and I still dont know everything. I returned my Node 2I because the interface treated me like a second rate citizen in my own home. It had to go!! I demoted the AQ Cobalt to my computer and use it for Porn now cause thats all its good for. Im saving up for a decent DAC . 
I have node 2i for over a year now.  Added an aftermarket power cord, ran a Cat 6 from router to Node.  I bought a Blue Jeans cable for $40.  I use COAX from Node to DAC.  I have a Topping D90.  It is about 700.  Very clean, dynamic, really quiet.  There are lots of brands that will work.  Some of the models are designed to tame that "digital edge" using tubes or R2R.  Whatever you do, don't use the digital volume on the Bluesound ap.  Turn it to fixed volume.  Otherwise it will sound..well..not as good.  I messed around for a year not knowing this.  You will notice that songs come in anywhere from 16/44.1 to 24/192.  I haven't had a lot to compare to but you can make digital sound very good; at least I think it does. 
If you're that much into vinyl, why get a stand-alone DAC at all?
In my opinion, a DAC in the $500-$1000 range may not bring enough improvement to justify the additional cost or device clutter.  

I used to run the Node 2i into a Peachtree Nova 500 integrated, which has its own DAC chip (the ESS 9028 Pro).  In A/B testing between the  Node DAC and the Nova DAC, I did not notice a difference.  

I'm not saying the Node 2i DAC can't be bettered, but I'd expect it to take more than what you're now willing to spend.  Not only that, but you might get more bang for the buck (and more fun) by adding a Roon subscription and a dedicated computer to run the Roon Core software.