Someone else will have to answer the hosting part of Blogger. When I used them I used the free Blogger domain. I know you can publish your blog to your own domain with Blogger but I'm not sure about how the hosting part works. Maybe someone else can answer.
As far as transferring your blog to a website, I think it's best to decide upfront if you are going to use a blog or a website. And if you do start with a website perhaps introduce a blog later or vice versa. Instead of transferring content from one to the other just use both. But I would start with one or the other.
The reason is a blog is structured a little different than a website. It has a lot of dynamically generated content. In English, that just means there are scripts that tell the content how to display automatically (by date, by category, etc.) A website generally has more static pages and it would be a challenge to try to setup a website to function like a blog.
Now of course you could copy the blog content and create web static web pages but that's a lot of work. It's better to take the time to plan and launch the one you think is best for how you plan to deliver the content.
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