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To control some LEDs through internet using Arduino UNO, which type of connection is better ? Ethernet or Wifi? (Later, I may connect some relays instead of LEDs, and control (turn on and off) some devices using this setup). The only difference I know is the wired and wireless connectivity. Is there any other difference?

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If you are beginner with Arduino its better to start with Ethernet Shield. Its much more easy to connect with Arduino.

WiFi Module - ESP8266 required some more knowledge, that you will learn in future.

The bought products are cheap, so you can start with Ethernet and after that to switch to ESP.

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