The server where you bought the domain probably offers hosting services but usually at a cost. If you want to do it for free, have your domain redirected to whatever free web service you decide to use for your website. Remember, free sites are limited in the number of pages and can have a lot of ads. On the other hand, hosting your own website as in Method 2 above, or having your site hosted where you bought and keep the domain, allows you to pretty much create as many pages as you want, without any advertising you don't put up for yourself.
It is important to remember that when you sign up with a web hosting company, you are not just purchasing a set of technologies. You are also entering into a business relationship. There are many non-tech reasons why you might choose one host over another. You need to be able to trust your hosting company. This is where customer reviews can be very useful.
Paul joined the Hosting.Review team right from the start as a content writer and marketer. He was the person responsible for establishing a trademark for in-depth web hosting evaluation and superb review articles. Before joining Hosting.Review, Paul was working on various projects as a freelancer. Paul spends his free time reading fantasy books and graphic novels.