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.
In particular, Web Hosting Hub uses BoldGrid as a site builder. BoldGrid is actually an add-on to WordPress, so there's no lock-in. This overcomes the major problem of most site builders: you're locked into that host and that tool, often requiring you to completely rebuild your site if you want to expand. By using a WordPress-based solution, all of the rather considerable power of WordPress is available for future expansion.
In the first quarter of 2015, 294 million domain names had been registered. A large fraction of them are in the com TLD, which as of December 21, 2014, had 115.6 million domain names, including 11.9 million online business and e-commerce sites, 4.3 million entertainment sites, 3.1 million finance related sites, and 1.8 million sports sites. As of July 2012 the com TLD had more registrations than all of the ccTLDs combined.
If industry-leading uptime and rapid-scalability are your two biggest concerns, cloud hosting might be just what you're looking for. Cloud hosting will get you access to a cluster of servers from which you can quickly provision resources when you need them. Along with having enough separation from unruly neighbors, your application should be kept safe. VPS and Cloud services are sometimes combined into a hybrid service called Cloud VPS or Scalable VPS.
A fully qualified domain name (FQDN) is a domain name that is completely specified with all labels in the hierarchy of the DNS, having no parts omitted. Labels in the Domain Name System are case-insensitive, and may therefore be written in any desired capitalization method, but most commonly domain names are written in lowercase in technical contexts.
Beyond that, Dreamhost is a 5-of-5 hosting company for many reasons. They operate their own control panel, which is convenient and easy to understand. While phone support isn't available 24-7, they are responsive to chat and tickets. The company uses superfast SSDs for all their storage, has a free SSL certificate (for more secured web browsing), and provides SSH access for those plans that are intended for more technical users.