Signals are passed forwards and backwards and converted by the unit. The wired options do have a little longer to setup, but provides further security. If the Android device is just not able to discover a hotspot, the app stops it from searching and draining the car battery.
They attempt to lower the prices on the products to your level that their competitors can. You can set it around record only at specific times in case you want and you are able to set it to record at various speeds approximately 30 frames per second.