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There is no one best format. Despite being the creator of the KFX Output plugin, I rarely use it myself. I find books in that format to be more easily readable, but since almost everything I read is sourced from Amazon I usually have that format with no extra effort.
The few books that I obtain elsewhere are converted to Master MOBI using the Kindle Previewer and sent to my Amazon account as personal documents. The resulting format isn’t quite as nicely rendered as KFX, but for me the ability to read on my phone when I am out and have the reading location instantly synced is more important.
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