How to transfer domain to another webhost?

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I’m confused. I registered a domain with Namecheap, now I’d like to host with Stablehost.

They let me choose 3 options:
I will let Stablehost register a domain
I will transfer my domain to Stablehost
I will update my nameservers

What’s the difference between the latter two?

EDIT: Both the latter options asks for my EPP code. However, Namecheap won’t let me transfer domain within 60 days of registration. I don’t understand, isn’t there an option where I don’t have to transfer? Keep my web hosting with Stablehost and domain at Namecheap

Last edited by Draphoelix; Today at 05:56 PM.

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