Do I need a VPS hosting?

Let's first understand hosting. You rent a server from a company and use their resources by paying monthly or yearly fees depends on which company you host with. Shared hosting means you share the same IP & resource (CPU, RAM) on one server with maybe hundreds of other users. While VPS gives you your own unique IP addresses & more control over the server such as root access, and also you share the resource with less users. Why do you need root access? Well, this is quite a difficult question for me, but one thing I do know is that you can freely install any third-party software in the server, there's more to root access beside that. If you are interested you can try wikipedia for more information. And dedicated means you are the only user of the server and you have full control over it. Some company even let you customize your own server such as more hard drive space or more RAM in case you need it.

When you are looking for a shared hosting, I recommend you to search for company that allows more concurrent connection or maximum user connection at a time. The more resonable one would be over 50, the more the better. Ask the hosting company if you can't find such information on their site, most if not all have concurent limitation on shared hosting. This is to make sure your site doesn't slow down other users on the same server and it's also one of the bad thing about shared hosting. Normally, if you just start out a new site with little traffic or less than a thousands visitors per day. You should be fine on a shared hosting. But that really depends on the nature of your site, for example if you provide large downloads for user, that'll result in many constant connection to your site, your shared server might not be able to handle even there's only 500 visitors per day. So it's your job to keep track of your own site and traffics, if you see constant downtime of your site or keep receiving 500 internal errors. It's about time to move to VPS. For your first hosting, I do somehow recommend godaddy. Their server is rather slow but the uptime is good. On top of that, they allows 100 - 200 concurrent connection on their shared hosting depends on the plan you decide to buy. I have to say it's quite a lot for a shared hosting, I've seen company offer 50 and even as low as 25 concurrent limitation. It's good for new site if the price is really cheap, but if your site grow fast you'll need a new server very soon.