What is web hosting and what types of hosting are there? Which one to choose?

Web hosting is a service that allows organizations and individuals to make their website accessible on the internet. There are several types of web hosting including:

Shared hosting - Shared hosting is a hosting for multiple websites located on the same powerful Web server. Usually recommended for new websites, as it's the most economical way to start a website. Your site is placed on a server with other websites to share the resources but you can still enjoy a lot of resources when no one else is using them.        

VPS hosting - With the virtualization technology multiple virtual servers are created on one powerful server, each of which resembles a single server, but is much cheaper than a single dedicated server. Recommended for more advanced users, and those needing to install specific packages or software not provided by shared hosting. Your website is placed on a server with other websites, like shared hosting, but usually, there are fewer websites per server. The other users don't get in your way or see your part of the server, so you have much more privacy and freedom to do what you want. However, you will never have the full power of the server at your disposal. VPS hosting also includes root or admin access to its own operating system in a virtualized environment.

Dedicated servers - When you get a dedicated server, your website(s) get access to the full server, since it's not shared with any other users. Dedicated server owners are allowed to sell hosting services for profit, and you can choose the server specifications and environment. This is the most powerful type of hosting, which meets the requirements and needs of big businesses. So if you have heavy traffic, a very popular site, or a large customer database, then consider Dedicated Hosting. Also, includes full root or admin access like a VPS.
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