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Most hosting companies, such as mine (hostgator) give the following notice when providing a contact email:

Email address that you can be contacted at. This should be an email address that is not on your account if you have one.

On my side, I have taken precautions to secure my email, such as SSL, POP on a encrypted computer, erase email both computer & server after reading it and so on. While it is not perfect , I feel more comfortable since I have more options to overlook the security process than a account such as gmail, hotmail or yahoo (even though I am still depending on a third party).

My main concern is having my hosting account associated with a "external" third party account such as gmail, hotmail, yahoo and others, which I am not the owner of such domains.

If a email account is compromise, most likely other accounts associated with that email become compromised, most of the time through "Forgot password" functionality including the hosting domain. Isn't this just creating another door to my domain?

Would creating a email account just for my hosting account be the best option? Or should I give my domain account for "xyzdomain.com" such as "user@xyzdomain.com"?

It is a double edge sword, I am able to overlook my own security but a malicious user could do the following: A user with bad intention could find a way to get my account suspended, then I would be unable to contact with my hosting company (unless I call, and start going through a painful verification).

What are some advice or plans I could take?

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You don't have to provide an external email. There is a second half of that statement that perhaps you should read. –  Ramhound May 30 '12 at 12:54
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2 Answers

Hushmail is pretty well-known for its free encrypted email service. An idea would be to create an account there for your hosting provider... Also they don't have such thing as forgotten password procedure... if you forget your password, that's it!

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Yes, registering your email address with your hosting provider is creating another way that someone could hack your hosting account. However, the benefits of registering your email address probably outweigh the risks.

The benefits are that it makes it easier for you to regain access to your hosting account, if you should forget or lose the password to your hosting account.

The risks are that if someone is able to hack your email account, they may able to take control of your hosting account. These risks can be mitigated by taking appropriate steps to secure your email account (choose a strong password; choose unguessable answers to your secret questions; register a mobile device for two-factor authentication).

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