Three hosting types cover most sites. The right one depends on traffic, how much you want to manage yourself, and how fast your site needs to be.
Shared hosting
Your site shares a server with other sites. It is the cheapest option and works well for small blogs and brochure sites. Performance can vary when neighbours use a lot of resources.
VPS hosting
A virtual private server gives you reserved resources on a shared physical machine. It costs more and needs more setup, but it gives you more control and steadier performance.
Managed WordPress
The host handles WordPress updates, caching, security and often backups. It costs more than shared hosting. It makes sense if you would rather not run server settings yourself, or if your site earns revenue that a slowdown would hurt.
A simple rule
Start with shared or managed WordPress for most sites. Move to a VPS when you can name a specific performance limit you keep hitting.