Hyperdimensional (HD) computing is a promising paradigm for future intelligent electronic appliances operating at low power. This paper discusses tradeoffs of selecting parameters of binary HD representations when applied to pattern recognition tasks. Particular design choices include density of representations and strategies for mapping data from the original representation. It is demonstrated that for the considered pattern recognition tasks (using synthetic and real-world data) both sparse and dense representations behave nearly identically. This paper also discusses implementation peculiarities which may favor one type of representations over the other. Finally, the capacity of representations of various densities is discussed.