When you host a website on a server, it works by using the server's shared IP - a special number that is used to distinguish any kind of device connected to the Net. The website name that you use for the site is for easy access and convenience of the visitors, but on a lower level, their Internet browser connects to the IP address of the server. Due to the fact that there are far more sites than IP addresses, shared website hosting servers use the same IP for a number of websites even if they are owned by different users. Even though this doesn't affect your website performance directly, having a dedicated IP may slightly increase the loading speed of a particular site, providing it higher rankings in search engine results. Such an IP is necessary for the setup of an SSL certificate as well, so when you wish to secure the payment or login details that your website visitors type in, you'll need an IP alongside the SSL.