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 the same and I’ve gone pretty deep down the rabbit hole, but I did it in steps. In my opinion it was well worth it. First thing is to use a wired Ethernet connection, I use a fiber optic bridge from my router. Second thing I did was upgrade that janky power cord with a wireworld one. Okay, sq has definitely gotten better. Next was getting a mytek liberty dac. Lucked out and found an open box deal on one. Lastly, no being able to leave well enough alone, adding a sbooster LPS to the mytek. Wow! I’m blown away! 
Forgot to add that the mytek has spdif, toslink, and usb inputs as well as balanced and unbalanced outputs.
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 .