Cheap web hosting gives you an opportunity to learn web hosting without a big hit to your bank account. A cheap host will give you an inexpensive way to get a website started, whether it be personal or professional. There are many situations when cheap web hosting will be the best option for you, it all just depends on what you are trying to accomplish with your website.
If you are going to have a small, personal website then choosing a cheap hosting company is a perfect option. You won’t need to be spending a lot of money to get all of the professional tools that a business class host has to offer. An inexpensive, reliable host is all you will need.
Any small business or informational website would be best served on a shared host, at least to start. While your expectations should be high for your business, you should also be realistic. Websites take time to grow and get traffic, and there is no need to spend hundreds of dollars on dedicated servers right off the bat. Hopefully you will be successful enough to grow your website into such a status later on, but for the time being a shared host will be a great start.