External DAC connection for Bluesound Node 2i (after "Another streaming newbie" thread)

Guys, thank you all very much! You gave me a lot of good and practical recommendations. My view of Node 2i is that it is a very versatile and capable streamer. I'll use it alone and will change power cord, this made a difference. As for external DAC for streamer only, budget-wise I would choose to go to a next level integrated streamer. When the time comes.
Stay safe and happy listening!

Trust your gut.  Listen to a Bluesound Node 2I with and without an external DAC.  Do a blind test and pick what your ears hear.  I purchased a Bluesound Node 2i and the dealer sold me an external DAC.  However, we did a blind test and after switching back and forth 10 times I listened to the dealer who said it sounded a lot better with the DAC.  I should have listed and trusted what my ears were hearing.

I thought the bass sounded thinner.  I stream Tidal and I can hear the difference when playing MQA.  When you connect an external DAC using COAX cable it breaks up the MQA unfold where you only get about 10% of the sound.  I thought and still think the Bluesound Node 2I sounds better by itself.  Bluesound customer support is also incredible.  I also met them at the RMAF in Denver and their people were the most knowledgeable.  I have suggested to them they add video so you can view concerts on your TV in higher res.

Just because you spend more doesn't it will sound significantly better.  I might think DAC's costing $3,000 might sound better, but how much better?  Are you better off upgrading speakers or an amplifier?

I first used a Peachtree Novapre as a DAC and preamp. Improvement over the built in Bluesound DAC. .Smoother. More dynamic.I since upgarded to a RME ADI-2 DAC FS. More air and definition. 

I use a Wireworld Supernova 7 Toslink cable.

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I use my Node 2 directly into Peachtree A220 power amp. This combo drives a pair of Magnepan 3.6 speakers extremely well. I found that upgrading to aftermarket Ethernet cables by Silver Sonic made a huge difference. 

I’ll concede that I haven’t yet tried using a separate DAC or a preamp for that matter, but since upgrading the cables I don’t have a strong desire to make more changes. I’ll probably look at an UpTone Audio Ether Regen given the magnitude of the changes made by better Ethernet cables.

Using a Dac Magic 100 via coax.  A lot more open and better soundstage than the bluesound node 2i alone.  The node 2i on its own might sound good if you are listening to some wireless speakers but in a halfway decent system it leaves something to be desired on its own.  Fortunately, had Dac Magic which I used with a CCA which didn't sound a whole lot worse than the node 2i when run via optical into DAC.  FWIW.  The aptx and other conveniences of the bluesound means I will probably keep it until I hit the number and can replace with something significantly better but ... it isn't the be all and end all of audio devices IMHO.