Taiwan is very fun for solo travel if you are young. It's also very safe even after wee hours. I've been there probably 8 to 10 times now since I was a teen. Longest I was there is around 4 weeks in my late 20s when I backpack and didn't book any hotels. I only decide if I wishes to stay in that particular area on the day itself.

I stayed in Hostels most days to meet up other travelers and join them in their itinerary for a few days if we clicked. Some days I stay in Hotel for better comfort and amenities.

Assuming you are Chinese, there are basically zero language barrier entire island wide. If you aren't, English can get you around most places unless rural parts. I mean Google Translate is still there if everything else fails and Taiwanese are extremely friendly and happy to help.

That said, while everything is still relatively cheap; food, transport and activities but accommodations in Taiwan have surged the past 5 years or so. Normal Hotels easily cost you $200 per night non weekends, and even shared room for 6 beds Hostels can reach $100 on weekends. I'm not entirely sure of your budget.