The method of transplanting your own hair from a dense growth area to an area affected with baldness is known as a hair transplant. It is a permanent method of hair restoration.
Both the methods are hair transplantation methods. While in Strip method a whole strip of skin bearing hairs is extracted and implanted, FUE concentrates on single unit follicles transplantation.
No, it does not affect rest of your hair as the process extracts micro units with essential care which leave a negligible effect on your scalp and hair growth.
This process does not demand you to stay back. You may leave the clinic after a few hours. However you are advised to restrain from any physical activity till one week.
If the doctor's advices are followed strictly then there are negligible side effects noticed. Though, in some patients allergy and scarring may occur to some extent.