Many webmasters are not aware of the differences between dedicated and shared servers, and instead simply choose the cheaper option available to them. If you are going to be selling items or running a business through your website, it is important that you find the right type of hosting so that your customers are always able to access your website. Generally, dedicated web hosting will be the best option from all cheap hosting companies because you will have a sever that is completely dedicated to your site instead of having to share space with others. Keep in mind, though, that dedicated web hosting is much more expensive and therefore is not always a viable option for every type of website.
Shared web hosting entails that you share the server that your site is on with a number of other customers. There are some risks associated with this type of hosting and that is why it is often the cheaper option that is available to you. This style of hosting is not recommended for individuals that run E-commerce website or for individuals that can not afford to have their sits go down. Keep in mind that shared hosting also means that you will have additional points of entry into the server, which gives hackers additional opportunity to gain entrance and cause some problems. The hacking of websites is most often done through shared server setups, so you may want to put a number of additional security measures in place when working on a shared hosting setup with your cheap hosting company.
Dedicated servers are also a very popular option, but usually are for more advanced webmasters that already have an established website that they are looking to host, or have an upcoming project that they feel will garner a lot of attention early in the process. Often times webmasters will choose the cheaper option available to them without thinking of the implications that it could have. You can count on your dedicated server having better uptime than your shared server simply because you are in charge of everything that is uploaded to it. no one will be placing any malicious files on your dedicated server and you will likely receive more help and attention from customer support, especially if you purchase a managed dedicated server which will allow you to have a representative assigned to your account to ensure that you always have someone there to answer your questions.