A VPS is basically a server running within a server. One physical server hosts multiple virtual servers, each isolated from the others.
A virtual private server, also known as a VPS, acts as an isolated, virtual environment on a physical server, which is owned and operated by a cloud or web hosting provider. VPS hosting uses virtualization technology to split a single physical machine into multiple private server environments that share the resources.
VPS hosting is generally different from shared hosting because the hosting company here gives you a separate Ram, Hard Disk, CPU. It's like the personal computer in your home. Basically, they will arrange a separate computer for you.
Generally, VPS hosting is best for medium to large level websites. If you have started a new website, then shared hosting will be good for you, but if you want to start e-commerce or big projects, then undoubtedly you should go to VPS hosting. Apart from this, if the daily traffic of your website is minimum 5000+, then you can easily take VPS, it depends a lot on the website structure.