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Can I register a domain name with a cheap registrar and transfer it to another hosting company? Pros and cons?

eledolie asked: I’ve decided on a particular hosting serivce which charges exorbitant domain name registration fees. I’m wondering if I can save on the domain registration fee by signing up with a cheaper registrar and then transferring it to the hosting service of my choice, and if there are any costs and downsides in this.Caffeinated [...]