Usually, as new webmasters we all start with shared web hosting which is the cheapest option. It is not secure and it can’t handle any major traffic but it is good for testing the waters and starting your new websites. Some of the websites may start doing good. If a website starts attracting major traffic, it is better to pay serious attention to it and move it to a vps server. A VPS or virtual private server is not a real server. A dedicated server may house several VPS accounts. It is much safer than shared web hosting environment where thousands of websites are pushed on a server. VPS accounts on a dedicated server don’t interfere or affect workings of each other. So, it provides flexibility and control much like a dedicated server without the costs of a dedicated server. Many cheap vps options are available in the online web hosting market. You can choose a vps according to your needs of disk space, RAM, operating system and other needs. Costs are a fraction of dedicated server costs.
A vps hosting gives more control on the hosting environment. You can reboot whenever you want. You can install operating system, scripts, applications etc. When choosing a VPS, keep in mind several things like location of VPS server, uptime, are they well priced etc. May be you would want to read several reviews before buying one. Best is you can ask in forums because webmasters in forums can provide you the most unbiased opinion as they are actual users.