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

RME ADI-2 DAC FS

Toslink from Node 2i to the DAC. Coax from Adcom CD player to the DAC.

Balanced XLR cables from the DAC to  MF M6si integrated.

No need to spend big bucks on digital cables or XLR.

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.