Game hosting comes in two main types: shared and dedicated.
Shared hosting
Your server shares hardware with others. Lower price, perfect for small servers (1-20 players).
Dedicated hosting
Your own server with guaranteed resources. Necessary for large servers with many players or heavy modpacks.
When to choose which?
Shared: up to 20-30 players, standard gameplay. Dedicated: 30+ players, heavy modpacks, RP servers with many scripts.