Each full "stop" on ND cuts the light in half and thus allows you to double the amount of time that the shutter is open.
If you were to only buy a single ND filter, I'd suggest a 3-stop filter. This because you should ALSO own a circular polarizer (not for waterfalls per se... but for lots of photography) and an circular polarizer can cut as much as 2 stops of light. That means you could stack a 3 stop ND (0.9) with a circular polarizer and you'd be blocking 5 stops.
Suppose your waterfall is in "sunny 16" lighting (a worse-case daylight scenario). You're at 1/100th (or 1/125th) at f/16 and ISO 100. Without having to touch the ISO or f-stop, 5 stops of ND filtering will take your show down to 1/60 -> 1/30 -> 1/15 -> 1/8 -> 1/4 second. That's enough to blur the waterfall. More time you add the smoother it'll be (and your camera might also be able to do ISO 50 and your lens might be able to go to f/22.)
Note that if you are using a wide-angle lens AND stacking filters, then the lens might be able to see the rings of all those filters -- it'll show up as a black vignette in the corners. They do make "slim" filters but often a slim filter has no threads on the front side so they can't be stacked.
As tirediron says -- the Cokin holder (which lets you slide in the square/rectangular filters made by Lee, Singh-Ray, or Cokin rather than the round thread-on filters) wont show vignetting because the sides of the bracket are far enough away from the lens' angle of view to be seen.