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What is the difference between Vertical and Horizontal scalling?
Dynamic scalling is a concept that help comapnies add more resources when needed, this can help to reduce cost of cloud computing while still keeping up with the performance
Vertical scalling
Vertical scalling is the idea of adding more compute resources to a system as the system needs it. its often used to scale up and down netowrk bandwith, CPU, Memory and of course storage on the fly.
Horizontal scalling
With horizontal scalling you are not tweaking the amount of resources for a server but rather how many servers opperate in the cluster. Horizontal scalling lets you automaticly spin up more servers within the cluster as the load increases and more resources is needed.

What should i choose?
Generally speaking horizontal scalling is for large envirements with many servers, as it requires more expertice to configure than vertical scaling. Vertical scaling is simple to manage and often used in smaller systems, this is becouse it relies on the virtual machines multi threading capability as more requests needs to be handled at the same time.
Vertical scalling is not ideal for services which requires high availiabilty as with one server you have a single point of failure (SPOF). With horizontal scalling you can ensure high availiabilty as you have more servers, it ensures the system will contenue to run if a server crashes.