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2

One hot encoder is your best choice. Still, you have to deal with enlarged dimensional size, though, as long as you don't drop categories you are not giving preferences. Dropping is needed to avoid collinearity which is a fancy way to say: "I have four friends, Anne, Bart, Carrie and Dylan. One of them is here with me. It is not Anne, it is not Carrie ...


2

Any numerical encoding necessarily introduces some ordering even where there is none, simply because numbers have order, whatever they may mean for us. Even one-hot-encoding introduces order since $1$ is greater than $0$, right? So any numerical encoding introduces order. One-hot might seem better, but if you ponder on the fact that it enlarges the ...


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