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No, if you do it correctly it won't delete nickel. How this works is that you install two things onto different partitions (sections on the SD card). Then, you can use a boot manager (like KSM, or GRUB) to boot from one partition or another. You won't lose any books or addons provided you do it correctly.
Alternatively, it is possible to install an operating system such as linux or android onto a separate card and then boot off that card (I believe you trigger a manual reset reset while a bootable SD card is inserted in the external slot).
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