Shared hosting is the most basic form of web hosting, and is best for websites with low to moderate traffic — small businesses and new websites will benefit from the low cost and relative simplicity of using a common server. Your website will be located on the same server as other sites, and will share the common resources of that one server (which usually means sharing an IP address, too). Your site will be allocated a certain amount of the collective bandwidth, and it may be impacted by other sites on that same server since the server’s abilities will be affected if any one of its websites — yours or someone else’s — experiences unusually high traffic. If someone else’s site has excessive usage, your site may slow. If your site has a spike, it may be shut off by your host and you might be charged for exceeding your allotted bandwidth.
Before you sign up for any web hosting provider, you are going to want to get an idea of how much storage space your website is going to demand. How many pictures, videos, or other media are you going to have on your site? How much information is it going to need to support (are you using your web host for email as well)? If your site is relatively small, you might not run into a storage problem regardless of the provider you go with.
Shared hosting is web hosting in which the provider houses multiple sites on a single server. For example, Site A shares the same server with Site B, Site C, Site D, and Site E. The upside is that the multiple sites share the server cost, so shared web hosting is generally very inexpensive. In fact, you can find an option for less than $10 per month.