The key difference between domain names and hosting is that the domain name is your address where users can find your site and the hosting is where the web site's files are stored.
Think of your domain name as a street address where you can direct people to find you on the internet. And then your hosting as your physical house and your website files being the contents.
A domain name points towards the hosting so when visitors type in your domain name into their browsers, the server knows where to find the correct website to display.
