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
In building reference DACs with both R2R and Sabre 32 bit chips each has their own sound.  The R2R generally sounds a little more musical, more dimensional, and a little more relaxed.  The Chip generally sounds not as dimensional but usually more extended top end, faster, cleaner, and sometimes quieter.  Trade offs aalways.
@bigkidz ,

Thanks for the explanation. I think given my tastes, the R2R sounds attractive.  Great information.
Hi @vinylzone,
You obviously appreciate high quality analogue playback and devote more money in that direction than digital (Limiting DAC to 500-1000.00. USD). So digital may be relegated to 2nd status.

Given the price constraints I believe that jjss49 offered excellent recommendations. Particularly the final 2 choices on his list. I suspect that you’d be  attracted to a more natural musical presentation. Both the MHDT and Musical Paradise would serve you well.

Both eschew OP-AMPS in the important analogue output stage and utilize no negative feedback (NFB) circuits. The Musical Paradise also offers an exceptionally stout power supply (Two separate power transformers). Either would represent a significant step up in sound quality compared to your current internal DAC.
Charles 
A used Ayre Codex now goes for $800- I know, I just sold 2.
For the money, it beats the Schiit Gungnir, and is close to the Yggy.
I can also attest to the customer service Ayre provides. They repaired my Codex quickly and at a minimal cost.
Bob
The Denafrips Ares-2 nine better or more anti digital glare 
a true high end bargain , and these R2R dacs get nigh5 and day better when you have say $3-5 k  Denafrips terminator,
holospring May dac, lab12 reference tube dac 
also for under $1k the very good vacuum tube Black ice audio wifi dac .actually under $800