What is the difference between shared hosting and a VPS?
With shared hosting you share a server with dozens of other websites; cheap and worry-free, but with shared performance. A VPS is your own walled-off slice of a server with guaranteed capacity and full control, but then you manage the system yourself.
Shared hosting is the entry tier: the provider puts many customers on one server and handles maintenance itself. You get a control panel and nothing to worry about. The trade-off is shared capacity; a busy neighbor can theoretically slow your site down, although good providers contain that reasonably well these days.
A VPS (virtual private server) gives you a reserved share of a machine with fixed CPU and memory. You can install anything and you are nobody's neighbor. The flip side: you are the administrator, so updates, security, and configuration are on you, unless you pay for a managed VPS.
The rule of thumb: a normal website, blog, or small store belongs on shared hosting (or managed WordPress hosting). A VPS becomes relevant with custom software, high traffic, or when you are a developer who wants the keys. DigitalOcean and Hetzner are the go-to names there.