I found the ansible playbook route described at join-lemmy.org to be very easy to install on a VPS. The benefit of a VPS is much simpler setup than running a home server, networking-wise. Plus it’s special purpose, so no need to worry about interfering with other things as you would on a multi purpose server.

I use mine as basically a personal blog that I have a bit more control over. I’ve subscribed to just a few communities on other instances to keep resource use modest.

• There is option in the admin panel with whom to federate and whom to block.
• Yes, just like I do now.
• Depends on the size, it can very well run on 1CPU 1Mem
• Single instance of the above size does not go over 5$, so for me it's worth.

1. You can subscribe to any community or add the instance to the Allowed Instances
2. Yes you can search the communities through your search e.g. !fediverse@lemmy.world an subscribe to it
3. My Instance is running on Hetzner I am using the CX21 (2 Cores, 4GB RAM, 40GB Disk Space) and its running really good (Its just me on this instance for now)
4. definitely yes 😁

It should federate automatically as long as you have it enabled. You won't see anything in all until at least one person on your instance subscribes to communities.

I used this script: https://github.com/ubergeek77/Lemmy-Easy-Deploy

I have mine running on a $6 vps from vultr, it doesn't really need much power if you're not hosting a lot of users and communities.

1. Yes.
2. Yes.
3. You can do it quite cheaply. It is feasible to run on a ~$5/mo VPS (Vultr, Linode, DigitalOcean, Scaleway, etc) if you are willing to suffer potential downtime if things go wrong on that one machine. Eventually you might run out of image storage, but that can offloaded to any object storage provider such as those offered by the cloud hosts I listed or ones run by e.g. AWS (S3), Wasabi, Cloudflare (R2), etc.
4. If you know nothing about servers, linux, docker, postgres, reverse proxies, netwroking, http, etc. then it may not be worth it to you. I like the idea of having complete control over what servers I federate with. I like the idea of having a built-in archive of everything I read and write on Lemmy. Running an instance is of minimal cost to me because I already run software (including postgres, the database Lemmy uses as well as my own email server) for myself so it is low impact to add just one more service. Ultimately there are so many variables that you have to decide it for yourself.

If you want some general advice on how to set things up or certain things you need to make sure are done right so your instance works feel free to reach out. If you want to check out a smaller instance (I am the only regular user, but have a few friends that use my instance from time to time) feel free to sign up for mine to see what it might be like.