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
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
If you're not satisfied with the Node 2i, you can make it sound better with an external DAC.  I went down that route, trying it with a Mytek Liberty and an Auralic Vega.  Better, but still not that great.  

For me, replacing it was a better and more sensible choice than trying to band-aid it with power cords, ethernet cables, or an external DAC.  I chose a TEAC NT-505 which was much better sounding than the Node / Auralic Vega combo (the Vega cost more than the NT-505).  I'd also look at the Lumin streamers. 

The NT-505 must be at or near end of life, TEAC was blowing them out on Walmart for about $1200 ($2000 originally).  You should be able to find one for not much more than your budget.

Save a little more money than your current budget and flip the Node 2i if you're not happy with it.
@vinylzone.
You have a lot of $$$ invested in your vinyl front end and I assume the rest of your system is of high quality as well. yet you are only thinking of investing $500 - $1000 on a DAC, it sounds like you have already delegated your digital front end to be so much less than it could be. I was once like you, a vinyl diehard, but much has changed in the digital world lately and if you really stepped up your game and spent more, I think you would be very pleasantly surprised. Why not consider buying current production second hand gear. If it then doesn’t rock your boat, you can easily sell it and recoup your costs.