With shared hosting, you share space on a physical machine and all its resources with other users. If one user experiences high traffic or needs more bandwidth or RAM, it affects the performance of every other server on the machine. Furthermore, the features and applications are limited only to those allowed by the provider. It’s the cheapest type of hosting that is best for basic, static websites, such as blogs, personal pages, and so on.
With VPS hosting, although you share space on a physical machine, you get a set amount of resources that strictly belong to your VPS server. Each server is separate, and its performance doesn’t depend on the workloads of other virtual environments. It’s a bit pricier than shared hosting, but the advantages of better performance, scalability, and complete control make it the perfect choice for growing websites and personal projects.
With dedicated hosting, you rent out the whole physical machine strictly for yourself. You are responsible for managing all the resources and are in charge of securing the system. This is the most expensive option of the three and is best suited for extra big projects or big companies with massive workloads.