What makes cheap webhosting so cheap? What are you sacrificing in order to get a lower price? Nearly all cheap webhosting packages are shared webhosting options. This unavoidably means that you will sacrifice several options in terms of speed, security and reliability.
Cheap, shared hosting packages are placed in large numbers on the same server. Therefore when any of the other users does anything with their hosting that interrupts the operation of your server such as running a CRON job incorrectly that continues to pull resources away from the server, your site(s) and everyone elses will be affected by it. This could mean that your website could be offline for an unknown amount of time due to the ignorance of a single user. Since there are often dozens of users on a single shared server, the odds of a possible crash are against you.
Sharing a web hosting server also means sharing the overall bandwidth available to the server. If a user hosts a high traffic site, or a website that contains a lot of video or flash that takes a long time to load, your website will suffer the consequences. If you intend to create one of these sites yourself, you probably don't want to do it on shared web hosting.
If one of the users that shares your hosting has security flaws within their account there is a chance that any potential damage that can be done will be done to the server itself, not any of that user's individual sites. The resulting limited bandwidth and crashes will be suffered by your site(s) as well.
Cheap web hosting is an okay option if your intention is to host small content based sites and you don't stand to lose a lot of money from slow loading or downtimes. Just remember that cheap web hosting is not always comparable to affordable webhosting.
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