Similarly, in a real dedicated server, you will pay for the entire server that is not shared with anyone else. You will get complete control over all services. Unfortunately, it is also the most expensive hosting option and needs some technical expertise to manage. It is commonly used by those who have websites with specific scenarios, most commonly extremely high traffic and tight security requirements.
A virtual private server is a single physical server, split up between a limited number of users. It is a similar hosting set-up to a shared server, where many user accounts are located on the same server. The main difference between these two server setups is that VPS accounts have fewer users per box, and the users get more control over their section of the server. Virtualization software divides the users from each other, although you’re not entirely isolated from being affected by other people on your server.
If you register a domain with Bluehost when signing up for a hosting account, there is a domain fee that is non-refundable. This not only covers our costs, but ensures that you won't lose your domain name. Regardless of the status of your hosting service, you'll be free to manage it, transfer it after any required lock periods, or simply point it elsewhere at your convenience. You retain ownership of your domain until the end of its registration period unless you elect to extend it. 
It works quite like shared hosting, as both of them are virtual hosting. However, shared hosting does not allow to extend or modify server settings. VPS hosting is more like a dedicated physical server on a virtual platform. You can manage and set up VPS for your requirements, as it is a separate server. Also, VPS server can be operated by a control panel that can be installed with a few clicks from the client system or the terminal command line. It means that you can even choose the same control panel as it is on shared hosting.
When purchasing a VPS hosting package the web hosting provider will manage all the hardware and while you will have administrative access through a control panel to do whatever you want with your server, they will still make sure that it is available, has up-to-date system software, it is secured and has the available hardware resources to run according to the VPS package specification.
Similarly, in the case of VPS, there are several users that are using the same server but they are isolated from each other. It means that no one will be affected by how much resources another is using. You will get the speed and security that you need without compromise. It is almost a perfect scenario because you will get the benefits of a private server with shared cost of services.
The force driving server virtualization is similar to that which led to the development of time-sharing and multiprogramming in the past. Although the resources are still shared, as under the time-sharing model, virtualization provides a higher level of security, dependent on the type of virtualization used, as the individual virtual servers are mostly isolated from each other and may run their own full-fledged operating system which can be independently rebooted as a virtual instance.
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