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Which is better between fat32 and ntfs?

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My computer did crash yesterday. So, I was trying to install new windows xp in it. When the setup had started, it first asked to format the disk. We couldn’t proceed without doing that. But there are mainly two types of file systems, fat32 vs ntfs file system to solve the problem. I read somewhere that fat32 has more chances to loose data and the ntfs is always a better option to fat32. What are your views on this?

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