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This simply indicates how many separate camera video streams they can record. They start from single channel devices going all the way up to 32. What level of video quality or resolution do you need?My usual recommendation of at least 1080p 2 Megapixels applies. There are tons of substandard 720p HD Ready systems you can get, but none of them will have the resolution needed to allow law enforcement positive identification of an intruder. Do you want the ability to use wireless cameras as well?While I generally do not recommend using wireless for critical home systems such as security, there are some situations where a wireless camera makes sense. Now you don’t need a WiFi enabled NVR to use a Wi Fi camera – this is a common misconception. A Wi Fi camera can simply connect to your Wi Fi router and thus be connected to the NVR. Do you intend to upgrade by adding more cameras later on?If you think you need only 2 cameras now, get a 4 channel system. If you think you need just 4 cameras right now, go for the 8 channel. Once you start enjoying the security provided by your spanking new CCTV system, you will enjoy the option to add more cameras. But if you want that luxury, plan ahead.