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Both connecting and transferring let your Noiseyard site live on your own domain. The difference is where the domain stays registered.
Connect your domain when:
You want to keep the domain registered with your current provider.
You are happy to keep renewing it there each year.
You only need to point it at your Noiseyard site.
Transfer your domain when:
You are leaving your current provider and want to close that account.
You would rather keep your domain and your website in one place.
You want us to handle the yearly renewal for you.
A quick way to decide: if you plan to cancel your old provider, transfer the domain. If you would rather keep the domain where it is, connect it instead.
Please note that:
If you connect a domain and later cancel the provider it is registered with, the domain can stop working. Transferring avoids this, because the registration moves to us.
Related help:
How to transfer my domain to Noiseyard from another provider?
How to connect a domain name I already own to my Noiseyard website?