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How does an unassigned domain differ from an addon?

How does an unassigned domain differ from an addon?

Unassigned domain cannot be used since it does not point to website while an addon domain can be used for website or email creation.

The addon domain creates a dedicated folder in hosting service unlike an unassigned domain.

Unassigned domain is set when one is not ready to host domain while addon domain is set in readiness for its use.

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