1 - Preferably, don't read the whole file and store it in memory. Just read one line (or group of lines representing an entry), process it, and repeat it for ...
Tips and Best Practices ... Character Encoding: Be mindful of character encoding when reading files. Use InputStreamReader with a specified charset if necessary.
There are many available classes in the Java API that can be used to read and write files in Java: FileReader, BufferedReader, Files, Scanner, FileInputStream, ...