Transferring domains

So I am currently registered MissMurder.net under Go Daddy, which expires in April. I want to change to 1&1, and right now since they currently have a deal going on. So I went to register, and it said I could transfer ownership to them, but heres what it says "You may choose a Transfer of Registrar to the 1&1 Group or Point DNS to 1&1 to point your domain name to 1&1 name servers."

Under Transfer of Registrar, it says "A registrar provides registration services for your domain by providing information to be entered into the Registry database so it can be correctly propagated through the Internet"

and under Point DNS, it says "Pointing is changing the name server records of your domain to our name servers so that you can use the domain with the web space in your new package."

So what are the differences, and which would you suggest I do??

The first actually transfers the domain to 1 and 1 and the second lets you use the domain name for a website hosting package thru 1 and 1 ( stays registered to go daddy )

ah okay thanks, +karma. ill have to think about which one to do...