Shared Hosting vs VPS Hosting: Shared hosting is a type of web hosting where a single strong server is shared with many websites. All the resources related to the shared server are shared with hosted websites which makes shared hosting the most affordable solution.
No doubt, more than 60% of websites are using shared environments.
Virtual Private Server (VPS) is a new technology and it is the second most affordable solution on the internet. VPS is a virtual server with more power and dedicated resources. It acts as an independent machine with its Operating System, Software, and applications. End-user gets full control and freedom to customize the applications and services according to their requirements.
To choose the right kind of hosting for your website, you must understand the pros and cons of each type.
Below are the pros and cons that will help you to choose the right type of service for your website.
Shared Hosting vs VPS Hosting: Pros of Shared Hosting

Cheap:
Shared service is the cheapest solution available online. It is an excellent platform for small websites providing tons of features on a low budget.
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Rich Featured:
It is not only cheap but it offers all the required rich features to webmasters. You will get Cpanel, FTP, email accounts, statistics tools, a firewall, and great uptime.
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Managed:
Shared service is often fully managed service which means your hosting provider takes full responsibility for network, hardware, and software issues. You will get all the necessary support to run and troubleshoot your website from your service provider. So, a nontechnical person can easily maintain and run websites with no extra effort.
Shared Hosting vs VPS Hosting: Cons of Shared Hosting
Low Resources:
Due to their shared nature, websites enjoy few resources. Many resources are capped and limited by a fixed formula to save the shared server from unexpected over-usage. An over-usage can crash the applications which is prevented by certain policies and limits. Shared service is not recommended for resource-hungry websites as well as websites with large traffic.
Insecure:
As many websites reside on the same server using the shared environment, a poorly coded website or a comprised code can be a security hole to hack the whole server.
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Shared Hosting vs VPS Hosting: Pros of VPS hosting

Affordable:
A virtual dedicated server is a cheaper solution compared to a dedicated server. Virtual licenses are much cheaper than the licenses of physical machines. VPS fills the gap between shared and dedicated hosting.
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Powerful Solution:
A virtual server offers dedicated resources with complete control to end-users. VPS can hold resource-hungry websites as well as medium-traffic websites easily. It is stronger and more flexible than a shared hosting environment.
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Secure:
Since you are the owner of a virtual server, there is no risk of bad neighboring websites in VPS. Also, you can apply strict security rules and firewall scripts to shield your server which is not possible in shared hosting.
Shared Hosting vs VPS Hosting: Cons of VPS hosting
Difficult to Manage:
VPS usually comes as an unmanaged solution that requires you to have definite knowledge to maintain your server efficiently.
As you have full control of your server, you are entirely responsible to maintain and secure your server. If you are not an expert or have little technical knowledge then you might feel it hard to manage and maintain the server in a proper manner
However, you can overcome this problem by purchasing a fully managed service at an extra cost.
Shared Hosting vs VPS Hosting: Conclusion
If you have a small website with low to medium traffic then shared hosting will do for you. If you have a website that is resources hungry or it has large traffic or it has important business data then you should consider VPS hosting as a reliable and stable solution.
There are many good hosts with affordable plans, I recommend Shopaserver.com as one of the best hosts with shared plans and Worldwide VPS hosting. They have an excellent reputation with pretty good prices.