127.0.0.1 :
This is just a Local Host. Every computer has it's own host. That is called it's local host. Hackers start their hacking with different types of knowledge of attacking. Attacks are most important to start hacking. You can hack something by attacking. So, you have to learn about attacks. But, the problem is where you can attack?? If you attack other server that is illegal. But, you can attack yourself by setting up a local host. 127.0.0.1 is the local host. This is your local host. You can attack here whenever you want. 127.0.0.1 is a Local Server of Microsoft. Internet Information Services ( I.I.S ). You can use your computer as a local host where you can use http/https websites. You can attack your own websites of your own host. That's why Hackers always says that, There is no other place like 127.0.0.1 because, it's your own proparties. It's totally safe to attack.
This is not illegal. This is only for increasing knowledges.