How is the traffic measured? What are the types of traffic , if any?

Measured traffic is either inbound or outbound, sometimes both ways.
Everything that is communicating with your server/service is measured in some way.

Traffic means "Data Transfer", which itself stands for the transfer of data on top of a communication channel (Internet connection).

In web hosting, traffic means the visitors coming on your website. The traffic is measured in terms of bandwidth. The bandwidth is allotted to you in your web hosting plan. So, the amount of bandwidth allotted can handle only that much visitors on your website.

If you have large amount of visitors on your website, you should consider unlimited hosting plans that offer unlimited bandwidth.

"Unlimited traffic" such a thing does not exists because of network's hardware limitations. That's this epuipment that will record server's traffic, generaly it is centralised under one interface. If the information is relevant and available, customers can find it on their customer portal. For individual websites or individual application measures; it is up to customer to setup tools that will give them infomations about visitors and users.

Traffic means vistiors on site or user/process on server that consumes

resources(bandwidth) of web hosting accounts(that are shared, VPS or

dediacated)

Traffic = the number of website visitors you get.

Sign up for a free Google Analytics account. On the dashboard, you can see the number real-time audience visiting your website. You can also view the total number of visitors over a period of time using the calendar.

Google Analytics is a powerful tool that can tell you, not just the number of traffic you get per day/week/month, but also which countries your visitors are from, where do your visitors come from (organic search, direct link, etc) , using which device do they surf your website, on which time of the day do the visitors appear most, and using which keyword do the visitors find your website.

Web traffic is the amount of data sent and received by visitors to a website. This necessarily does not include the traffic generated by bots. Some companies offer advertising schemes that, in return for increased web traffic (visitors), pay for screen space on the site.

Web traffic is measured to see the popularity of websites and individual pages or sections within a site.
It can be measured by viewing the traffic statistics found in the web server log file, an automatically generated list of all the pages served. A hit is generated when any file is served.

Yes, there are always limitations, but they are not always critical.

In terms of billing, it is mostly outbound from the network device / lan. Data is sampled at intervals and then calculated.

Traffic is the amount of data which goes through the port of the switch that server is using, by that amount provider can measure how you use their network.

Traffic means visitor that visit your website. or the amount of bandwidth you recieve.

Whatever you request coming to your server or going from your server is counted as traffic.
In hosting package its not only your website but it includes everything
SSH
RDP
FTP and any other incoming/outgoing request of your hosting.

Don't sacrifice security and quality. It is not ideal to jump into affordable web hosts in which in the long run can lead to many problems such as web site accessibility and, worst, shutting down of web site.