To understend what is the difference between shared Hosting and VPS Hosting, and to decide what is better for you first you have to read what they are and to know what you need.
What is a Shared Hosting
This Hosting is one of the most popular ones in the market. This is also the cheapest web hosting, because they host in one single server multiple number of websites, which share all its recources,
such as disk space, bandwidth and traffic. The best thing about this web Hosting is that because it is on a shared platform, the cost charges to every single website are much cheaper
then if you use a dedicated server to host your website. This web hosting is good for beginners or small size websites which do not need so much recources. Growing of your website,
midle or big size websites, websites with big volume of images or video's will need more bandwidth, traffic and disk space, which have to be guaranteed for the good performance of such websites.
This you can not find in the shared web hosting and have to look for another option.
What is a Virtual Private Server - VPS?
This is next step, what you have to do if your website can not stay any more on a shared platform. You go to the next quality level for hosting of your website on one affordable price,
still much cheaper than using of dedicated server. The Virtual private server also places numerous websites on a single server but here the resources are not shared and only the server is shared.
It is like a dedicated server, where the website owner can customize and make changes on his website without interfering in the specifications of the other websites available online. You can place in your
virtual space more than one of your websites, depanding on the features of the chosen by you VPS Hosting Plan. You may here also choose the OS of your VPS, like Windows, Linux or some other,
that supports your website's technology. For example if your website is a ASP.NET application you must ask a vPS with preinstalled Windows OS, which supports ASP.NET, otherwise your website won't work.
Here you can easy host some bigger websites or your business websites for a longer time.
Summary
The best web hosting service of cource can be reached using of a dedicated server, where the whole server is customized and managed only for yor website individually and specifically. The management,
security and the bandwidth are guaranteed, but this service is still expensive, and is mainly used by big business websites or companies.