Shared hosting
Your website files are stored on what is called a server. This is a computer built with the purpose of storing your information. In shared hosing, you have to share your server with other people. All of your website information and data are also shared, but your data remains separate. However, you do have to share the resources and space on that server.
The biggest advantage to this server is that the costs of hosting are much lower. On the other hand, it also has much less capabilities and power than in dedicated hosting. Simple websites, however, do fine with shared hosting. Shared hosting comes in both free and paid versions.
VPS hosting
VPS hosing (virtual private server), is like shared web hosting, but different. When you use a VPS, you still have to share the server, but the division is a little more complex. Basically, it is one server that acts as several servers. This helps yoru website run better. A VPS is more powerful than most shared server packages, meaning that it can be faster and allow more traffic visitors. You will have to pay more for this hosting option. Ecommerce sites and high-traffic blogs work well with VPS hosing.
Dedicated server
A dedicated server is a single server that is dedicated to your business only. This is the most expensive and the most powerful option. New websites usually do not require dedicates servers. However, large websites with high traffic often need a dedicated server to keep up with demand and traffic.
Other factors to consider
Managed vs unmanaged hosting: A managed hosting provider can help you run your website smoothly without technical knowledge. Someone will manage your server and handle the technical issues while you can focus on other aspects of your website. Most people will need a managed host, unless they are extremely tech-savvy.
Disk space: Larger disk space equals a larger website. However, if you are not going to use all that space, there is no reason to pay for it.
Control panel format: Some hosts have extremely complicated control panels that are hard to use. You should use a panel that you are comfortable with, and that you find easy to use.