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Recently I switched to Bluehost shared hosting and in a few months came to know of their hidden features. They have ridiculously low limit of 25 connections per user for mysql. Can I use it for a mid size wordpress (woo-commerce) site with around 500 products and maybe 100 visitors per day. ?

Nikhil
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With 100 users a day looking at a site of that size, you would have to assume that the traffic is 1 to 2 people browsing at a time. I would say that the limits are fine.

What I would suggest to do is set up a Cloudflare account and direct your traffic via the free service. If you also install the plugin "Super Page Cache for Cloudflare" by Optimole, you will find the load on the server itself will be reduced with Cloudflares Caching and CDN.

This setup will help you scale and keep hosting costs down whilst you are growing. Eventually, you will need to upgrade your hosting solution to a high CPU count/speed as the database and site grows.

Also, keep your database optimised, this will help look ups to happen even faster.

I've over a decade doing this for myself and my clients, there is an endless path you can go down to achieve the fastest speeds.

In answer to your question though, just to conclude. Yes it is.