ebook reader

Go for kindle. I have NT4 version and its great. Price is appx. 5K only. Install Duokan OS and you can read epub files as well. Kindle paperwhite is recommended if you want backlit for night reading.
 
Kobo also has a e-ink display. Further it can read both the popular formats epub & mobi. kobo also has SD card slot apart from the 2gb memory. Thirdly there are a variety of models available for kobo whereas for kindle we have only two models and the paperwhite is 2012 model. I have a kindle but I think the kobo is better value for money than the kindle especially the one with touch & without the backlight
 
I am using Kindle Wi Fi eInk eBook reader for past two years and satisfied with it. Both Kobo and Kindle are good. Compare and take your call. Both will serve you the purpose.
 
I would urge you to look at your usage pattern, and buy the device that makes sense. Personal example - I bought a Kindle DX a couple of years ago and am also an avid reader. However, my reading pattern changed drastically due to a newborn baby - could no longer read with the lights on, and free time became very limited.

My Kindle is now gathering dust, and I find myself reading on my phone and tablet the most. Phone most of the time because it is with me all the time, and I can read when I am say, waiting in a doctor's office or when travelling etc.

I really don't find it a pain to read on an active display (phone/tablet). And the Kindle app does a real nice job of keeping multiple devices in sync. So I can pick up reading on my tablet from where I left off on my phone.

But this is just my personal example. Your situation might be very different. Personally, I really like Kindle Paperwhite for the backlighting, but Kindle is more of a walled garden than a Kobo.
 
Do consider the Nook in your discussions as well. It is a very very good reader with proper e-ink capabilities and has better resolution than the Kindle, supports mobi and epub by default, and much like Amazon has a huge library of books to offer.
All three are great readers, if you love to read then this is a great time. Use Calibre to convert from one format to other, this little freeware is a great tool.

Whichever one you choose, do get yourself a quality protective casing / cover for the device and its screen. These displays are very prone to scratches and inadvertent damages to the panel. For me the aesthetics of the cover is very important, after all the the feeling of reading is a very cherished one and that must not be tarnished.
 
I use a Nook simple touch and it serves my purpose very well.
Get something with backlight, if you like to read at night.

I have rooted my Nook and have installed the Android and have installed all the News/Reading apps.
I find reading on the Nook very much pleasing to the eyes then on my Asus Transformer Infinity tablet.
 
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