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Many people here talk about separating paragraphs with an empty line. I do not think that is a good solution. A full empty line, especially when the previous paragraph ended in a very short line can be distracting and is also quite wasteful from the point of view of 5" screen real estate.
If you do not like to have first line indentation, it is much better, IMHO, to separate paragraphs by a space that is only slightly wider than a regular space between lines.
Fortunately my reading device does support such solution.
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