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 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. 
The OP refers to DACs as a “secondary “ source.  Transports matter, but the DAC imo is much more important.  Think of it like a gourmet restaurant.  You have a great chef (DAC).  The chef has two helpers to purchase the ingredients.  One goes to Walmart and gets reasonable quality food, at least it isn’t rotten and worm filled (Node 2i).  The other goes to Farmer Markets, etc and gets the highest quality food.(any other DAC than the Node).  The chef will probably make a great meal either way, but which would you prefer?
Sorry, the last parentheses should be “any other transport than the node 2).
Assuming you are able to stick to your budget of up to $1K,  please keep us apprised of what you ended up with and feedback would be appreciated...  I