In order for a website to be accessible by internet users, it must "live" somewhere on the internet and specifically, be hosted on a server, which is online 24 hours a day.
In the case of shared web hosting, which is the most common form and probably the one you will choose to begin with, more than one site can be hosted on one server, sharing the costs and resources of the server. A practical example that will help you understand, is to think of the server as an apartment building in which you rent an apartment (hosting package) to "stay" your site.
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