There is no universally correct way to run Pterodactyl. Self-hosting is a good fit when operating the server is part of your goal. Managed hosting is a good fit when the panel is a tool for your hosting business and you would rather spend your time on customers, products and nodes.
Control
With a self-hosted VPS you control the operating system, web server and database. With managed hosting you retain panel administrator access and choose your own nodes, but the provider handles server administration and reserves maintenance access for that work.
Maintenance and recovery
Self-hosting means planning updates, monitoring, backups and recovery yourself. Managed hosting moves those recurring tasks to the service, so compare the actual backup retention, update process and support response rather than comparing slogans.
Cost and time
A VPS may look cheaper on a monthly invoice, but the total cost includes your time and the cost of a failed update or missing backup. Managed hosting is a predictable operating expense. It can be worthwhile even for a small panel if it removes maintenance work you do not want to own.
A practical decision
Choose self-hosting if you need root-level control or want to learn and operate every layer. Choose managed hosting if you want a ready panel, your own domain, updates and backups handled, and the freedom to focus on the hosting service around it.
Try the managed option for three days and evaluate the panel before choosing.