I can't fit all of my books onto my Reader (Sony PRS-505). I tried an SD card once and got impatient with the time it was taking to load up and haven't bothered with it since.
I keep books I'm going to read on my Reader and I add books until the memory is full.
I also have a Kindle, which are books I have not read and an Android phone that has only the books I am currently reading.
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