Beginner Guide to VPS Hetzner and Coolify

1 month ago 2

Checklist to setup VPS

I set up my own VPS, documented every step, and ended up with a repeatable deployment pipeline. This is both a checklist for my future self and a guide for anyone curious about self-hosting. Along the way I'll explain why I picked Hetzner and Coolify, and how they compare with other options like DigitalOcean, AWS, Render, or Fly.io.

This comprehensive checklist covers every essential step for setting up a secure, production-ready VPS. Each section includes commands, verification steps, and troubleshooting tips based on real-world experience.

Pre-Setup Checklist

Before You Begin:

  • Choose your VPS provider (Hetzner recommended for price/performance)
  • Select server specifications (minimum 1GB RAM, 20GB storage)
  • Note down server IP address and root credentials
  • Prepare your local machine with SSH client
  • Have a strong password generator ready

Picking the VPS provider

  • Chose Hetzner Cloud (cheap, fast, reliable in Europe)
  • Alternatives I considered:
    • DigitalOcean → smoother onboarding, great docs, slightly more expensive
    • AWS Lightsail → decent for small apps, but tied to AWS ecosystem (complex for beginners)
    • Linode → reliable, but Hetzner wins on price/performance
    • Render/Fly.io → easier PaaS, but more opinionated and costly at scale

Why Hetzner?

  • 2–3x cheaper for the same specs compared to DO/AWS
  • Strong European datacenter presence (latency advantage for my use case)
  • Transparent pricing and no surprise bills

Initial Server Setup Checklist

First Login and System Updates

  • Initial login as root
  • Update package lists and upgrade system

apt update && apt upgrade -y

  • Verify system information

uname -a cat /etc/os-release

Root Account Security

  • Change root password
- Use strong password with mixed case, numbers, symbols - Store securely in password manager
  • Create secondary user account
- Choose descriptive username (not 'admin' or 'user') - Set strong password
  • Add user to sudo group

usermod -aG sudo your-username

  • Verify user groups
- Should show: `your-username : your-username sudo`
  • Test sudo access

su - your-username sudo whoami

- Should return: `root`

SSH Key Authentication Setup

  • Generate SSH keys on LOCAL machine (not server)

#### Ed25519 (recommended) ssh-keygen -t ed25519 -C "[email protected]" ##### Or RSA if Ed25519 not supported ssh-keygen -t rsa -b 4096 -C "[email protected]"

  • Display public key on local machine

cat ~/.ssh/id_ed25519.pub #### or cat ~/.ssh/id_rsa.pub

  • Copy public key to clipboard
  • Create .ssh directory on server (as your user, not root)

mkdir -p ~/.ssh chmod 700 ~/.ssh

  • Create authorized_keys file

nano ~/.ssh/authorized_keys

- Paste your public key - Save and exit
  • Set correct permissions

chmod 600 ~/.ssh/authorized_keys

  • Test SSH key login (from local machine)

ssh your-username@your-server-ip

- Should login without password prompt

Disable Password Authentication

  • Edit SSH configuration

sudo nano /etc/ssh/sshd_config

  • Modify these settings:

PasswordAuthentication no PubkeyAuthentication yes

  • Check cloud-init config if exists

sudo nano /etc/ssh/sshd_config.d/50-cloud-init.conf

- Set `PasswordAuthentication no` here too if file exists
  • Test SSH configuration
- Should show no errors
  • Restart SSH service

sudo systemctl restart ssh #### or sudo service ssh restart

  • Verify service status

sudo systemctl status ssh

- Should show active (running) with green dot

Disable Root Login

  • Edit SSH configuration

sudo nano /etc/ssh/sshd_config

  • Change root login setting
  • Restart SSH service

sudo systemctl restart ssh

  • Test root login is blocked (from another terminal)
- Should get "Permission denied"

Firewall Configuration Checklist

UFW (Uncomplicated Firewall) Setup

  • Check UFW status
  • Set default policies

sudo ufw default deny incoming sudo ufw default allow outgoing

  • Allow SSH before enabling firewall

sudo ufw allow ssh #### or if you changed SSH port: sudo ufw allow 2022/tcp

  • Allow HTTP and HTTPS for web apps

sudo ufw allow 80/tcp sudo ufw allow 443/tcp

  • Enable firewall
- Type 'y' when prompted
  • Verify firewall rules

Advanced Firewall Configuration

  • Restrict SSH to your IP (optional but recommended)

sudo ufw allow from YOUR_IP_ADDRESS to any port 22 sudo ufw delete allow ssh

  • Change default SSH port (optional security through obscurity)

sudo nano /etc/ssh/sshd_config

- Change `Port 22` to `Port 2022` (or your chosen port) - Update firewall: `sudo ufw allow 2022/tcp` - Remove old rule: `sudo ufw delete allow 22/tcp` - Restart SSH: `sudo systemctl restart ssh`

Automatic Updates Setup Checklist

Unattended Upgrades Configuration

  • Install unattended-upgrades

sudo apt install unattended-upgrades apt-listchanges

  • Enable automatic updates

sudo dpkg-reconfigure unattended-upgrades

- Select "Yes" in the dialog
  • Configure update settings

sudo nano /etc/apt/apt.conf.d/50unattended-upgrades

  • Uncomment security updates line

"${distro_id}:${distro_codename}-security";

  • Configure email notifications (optional)

Unattended-Upgrade::Mail "[email protected]";

  • Enable automatic reboots if needed

Unattended-Upgrade::Automatic-Reboot "true"; Unattended-Upgrade::Automatic-Reboot-Time "02:00";

  • Test configuration

sudo unattended-upgrades --dry-run

  • Check service status

sudo systemctl status unattended-upgrades

Production Application Deployment Checklist

Node.js Production Setup

  • Install Node.js LTS

curl -fsSL https://deb.nodesource.com/setup_lts.x | sudo -E bash - sudo apt-get install -y nodejs

  • Verify installation

node --version npm --version

  • Install PM2 globally
  • Upload your application files

scp -r ./your-app your-username@your-server-ip:~/

  • Install dependencies

cd ~/your-app npm install --production

  • Create production build

Process Manager Configuration

  • Start application with PM2

NODE_ENV=production pm2 start app.js --name "your-app"

  • Configure PM2 for clustering (optional)

pm2 start app.js -i max --name "your-app-cluster"

  • Save PM2 configuration
  • Enable PM2 startup

pm2 startup #### Run the command it outputs

  • Test application restart

pm2 restart all pm2 status

Reverse Proxy Setup (Nginx)

  • Install Nginx
  • Create site configuration

sudo nano /etc/nginx/sites-available/your-app

  • Basic Nginx configuration

server { listen 80; server_name your-domain.com; location / { proxy_pass http://localhost:3000; proxy_http_version 1.1; proxy_set_header Upgrade $http_upgrade; proxy_set_header Connection 'upgrade'; proxy_set_header Host $host; proxy_set_header X-Real-IP $remote_addr; proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for; proxy_set_header X-Forwarded-Proto $scheme; proxy_cache_bypass $http_upgrade; } }

  • Enable site

sudo ln -s /etc/nginx/sites-available/your-app /etc/nginx/sites-enabled/

  • Test Nginx configuration
  • Restart Nginx

sudo systemctl restart nginx

SSL Certificate Setup Checklist

Let's Encrypt with Certbot

  • Install Certbot

sudo apt install certbot python3-certbot-nginx

  • Obtain SSL certificate

sudo certbot --nginx -d your-domain.com

  • Test automatic renewal

sudo certbot renew --dry-run

Monitoring and Maintenance Checklist

Basic Monitoring Setup

  • Install monitoring tools

sudo apt install htop iotop netstat-nat

  • Check system resources
  • Monitor logs

sudo tail -f /var/log/syslog sudo tail -f /var/log/auth.log

  • Set up log rotation

sudo nano /etc/logrotate.d/your-app

Backup Strategy

  • Create backup script
  • Sample backup script

#!/bin/bash DATE=$(date +%Y%m%d_%H%M%S) tar -czf ~/backups/app_backup_$DATE.tar.gz ~/your-app #### Add database backup commands if needed

  • Make script executable
  • Set up automated backups
- Add: `0 2 * * * /home/username/backup.sh`

Troubleshooting Checklist

Common Issues and Solutions

SSH Connection Problems:

  • Check firewall rules: sudo ufw status
  • Verify SSH service: sudo systemctl status ssh
  • Check SSH logs: sudo tail -f /var/log/auth.log
  • Test from different network

Permission Denied Errors:

  • Check file permissions: ls -la
  • Verify user groups: groups username
  • Check sudo configuration: sudo -l

Service Not Starting:

  • Check service status: sudo systemctl status service-name
  • View service logs: sudo journalctl -u service-name
  • Check configuration files syntax

High Resource Usage:

  • Identify processes: htop
  • Check disk usage: df -h
  • Monitor network: netstat -tulpn
  • Review application logs

Final Verification Checklist

Security Verification

  • Test SSH key authentication works
  • Verify password authentication is disabled
  • Confirm root login is blocked
  • Check firewall is active and configured
  • Verify automatic updates are working
  • Test application runs in production mode
  • Confirm SSL certificate is valid
  • Verify backups are being created

Performance Testing

  • Run basic load test

#### Install Apache Bench sudo apt install apache2-utils #### Test with 100 requests, 10 concurrent ab -n 100 -c 10 http://your-domain.com/

  • Monitor resource usage during load
  • Check application logs for errors

Quick Reference Commands

System Information:

htop # System monitor df -h # Disk usage free -h # Memory usage uname -a # System info

Process Management:

pm2 status # PM2 process status pm2 restart all # Restart all processes pm2 logs # View logs pm2 monit # Real-time monitoring

Security:

sudo ufw status # Firewall status sudo fail2ban-client status # Fail2ban status sudo lynis audit system # Security audit

Services:

sudo systemctl status nginx # Service status sudo systemctl restart nginx # Restart service sudo journalctl -u nginx # Service logs

Final thoughts

This checklist provides a complete approach to VPS setup and management. This isn’t just about saving money. It’s about control and understanding. By self-hosting with Hetzner + Coolify, I built muscle memory for devops that paid off in confidence and freedom.

If you’ve been meaning to try VPS hosting, consider this a nudge.

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