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 used to have a VPI Aries, JMW 10 Arm, Art Audio Vinyl One Tube Phono stage and various high end MC cartridges that rotated through the system. I also have a Node 2i and went through the same process you are going through now. I got the Musical Paradise D2 DAC. It's wonderful! You must however, consider upgrading the tubes and caps. The supplied rectifier tube is crap, the gain stage tubes are very good but there are better.

Also the coupling caps are easily upgraded and make a significant difference. The unit was designed so they could be replaced easily as they are held in with binding posts, they are not soldered. With all these upgrades, my digital source is as good if not better than the analog I had.

Also consider streaming Tidal, not so much for MQA but for the access, at times,  to multiple masterings of the same releases so you can choose to listen to the best sounding one. Much of the digital I had on CDs did not sound as good as vinyl because the early A to D transfers were not done well. New remasters often are much better. Streaming Tidal ( we don't have Qobuz in Canada) is my way to access these remasters. Lastly, in my experience, a Coax cable from the Node 2i to the MP Dac is the better sounding way to connect them.
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.