This is the first post in the series of recommended budget technology and one that relates to the best entry-level e-reader. In this case, unfortunately, there is an easy recommendation due to the lack of choice with e-readers and the uniformity of the six-inch display size. There are options at 6.8, 8 and 9.7 inches but these would not qualify as an entry level device due to their relatively high price (larger sizes, due to their restricted availability, and niche demand, means the cost of many of these devices are inflated. Nevertheless, there will be future posts on larger e-readers). For this reason, two devices are selected - the Kindle basic and the Kobo Touch 2. There are other similarly priced options available but these two devices are more readily available. For example, other possible entry-level e-readers would be the Bookeen Cybook Essential Muse or Pocketbook Basic Touch. However, both these are restricted in their availability.
Between the Kobo Touch 2 and the basic Kindle, the recommended device would be the Kindle. Amazon continues to improve its e-reader firmware and while it does not offer the best customization of the e-reading experience (e.g, text alignment, line/margin spacing variation, adding fonts), it comes with its own rich features, with options to sync both Kindle and side-loaded e-books, send documents wirelessly to a user designated email, Wikipedia integration, Goodreads integration, translation, vocabulary builder and more.
While Amazon exclusively supports MOBI or it propriety version of MOBI (AZW3), rather than EPUB, it is possible to convert between e-book formats and this generally produces identical results (conversion can be through Calibre or online). This means you are able to store non-DRM converted EPUB e-books in the Amazon cloud and the e-book will sync across devices.
However, there is a significant problem with the Kindle's adoption of the MOBI based format, in the that there is no support with Adobe Digital Editions. What this means is that either a book is to be purchased in a DRM-free EPUB format, then converted, which some publishers offer, or the e-reader is locked in the Amazon store. This does not apply to the Fire tablets that can work with DRM protected books, through installing or sideloading applications compatible with the EPUB format (e.g. Mantano Reader can be sideloaded to access DRM protected books).
Generally, the basic Kindle is the better overall entry device but the Kobo Touch 2 is the better option if you wish for more flexibility in reading both MOBI and EPUB, due to both formats being supported and with further support with Adobe Digital Editions. Yet there will be a compromise, compared to the Kindle, in cloud storage and more extensive syncing services. This means if you wish to manage a large library across different devices, including personal documents, then the Kindle is the better option.