This is the default method of account creation. When you choose this method, the account is created without any email verification. This means that you will not be able to recover your password if you forget it.
This method requires email verification. This means that you will need to provide a valid email address and verify it by clicking on a link sent to that email address. Once your account has been verified, you will be able to recover your password if you forget it.
Here is a table that summarizes the differences between the two methods:
|Ability to recover password