How to Set Up a VPN on VPS Server: A Step-by-Step Guide

Set up a VPN on a VPS for enhanced privacy, security, and control. Follow this step-by-step guide to configure your own VPN server on a VPS easily.

Updated: 05 Apr, 25 by jean lou 14 Min

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By setting up a VPN on VPS server, you can gain considerable control over your IP address, improve network security and privacy, and get around regional limitations without relying on third-party VPN services. If you’re looking for a dependable platform, MonoVM offers a solid basis for a VPN server with flexible resources, multiple data centers around the world, and simple server relocation. Parallel to this, virtual private servers, or VPS, have gained popularity due to their control and adaptability. If you value your online privacy, then you’ll need a VPN with a VPS for enhanced protection, privacy, and customized configurations. In this blog post, we’ll discuss how to install VPN on VPS

A VPN or virtual private network helps you to create a secure online identity. It creates an encrypted connection between your device and a distant server to hide your IP address. As a result, your data will be protected from possible interception. A VPN guarantees your online actions stay confidential and safe. 

On the other hand, with a VPS or Virtual Private Server, you’ll have more control because of having root access, dedicated resources, and the capacity to execute custom programs. A VPS is a virtualized server that replicates the features of a dedicated physical server in a shared hosting setting. 

Hosting a VPN on VPS combines the benefits of both. By setting up a VPN on VPS server, you’ll have complete control over your VPN configuration. Also, you can benefit from security measures, better performance, and privacy. This approach eliminates reliance on third-party VPN providers, granting users autonomy over their data and connection protocols.

Firs, you should know about VPN vs VPS. Then, you can take many advantages of VPS hosting with VPN, including:

  • Increased Privacy: By using a VPS for VPN, you eliminate the possibility of data leaks and guarantee that your browsing activities stay private.
  • Dedicated Resources: A VPS allots specific resources such as CPU, RAM, and storage to your environment. It ensures consistent performance free from other users' interference.
  • Complete Control: With root access to your VPS, you can configure the VPN to your exact specifications, choose preferred encryption protocols, and implement custom security measures.
  • Better Performance: VPS hosting typically offers better speed, uptime, and reliability compared to shared hosting environments. As a result, you’ll have a stable and responsive VPN experience.

Now, it’s time to answer how to install VPN on VPS? You’ll definitely doing this for more control and privacy over your internet connection. Here, we mention how to configure VPN on VPS incorporating popular VPN protocols and steps applicable across providers like MonoVM, DigitalOcean, Linode, and AWS. Here are the steps you need to follow to set up a VPN:

Prepare these Requirements 

To create a VPN service using a VPS server, you need:

  • VPS Server: Ensure your provider allows VPN installation.
  • SSH Client: Use PuTTY (Windows) or Terminal (macOS/Linux).
  • SFTP Client (Optional): FileZilla or WinSCP (recommended over FTP for security).
  • OpenVPN Client: Required for connecting to the VPN.
  • VPS IP address
  • VPS username and password 

1- Choose a VPS Provider 

If you’re looking for a VPS which is fast, secure, and has an affordable VPN setup, you can choose MonoVM for VPS. With plans starting at just $3/month, it can be an affordable option for hosting your VPN. Also, it has an easy setup process. There are also other good providers available including DigitalOcean, Linode, and AWS. 

2- Create Your VPS Instance

Setting up a VPS can be different with different providers, but totally, the steps are the same. Here we’ll mention how to set up your VPS instance with MonoVM: 

  1. Sign up and access the MonoVM control panel.
  2. Choose a Windows or Linux distribution (Ubuntu or Debian are recommended for VPN setup)
  3. Pick a server location closest to your target usage region for optimal performance.
  4. Select an instance size—for a personal VPN, a small VPS is usually sufficient.
  5. Generate or upload an SSH key for secure access.
  6. Deploy your VPS and take note of the IP address, username, and password provided.

3- Connect to Your VPS via SSH

For Windows, open PuTTY and enter the following details:

  • Host Name (or IP address): VPS server’s IP address
  • Port: 22
  • Connection type: SSH
  • Click Open

For macOS/Linux, open Terminal and run:

ssh username@your-vps-ip

Replace username with your actual VPS username. Enter your password when prompted (note that characters will not appear as you type for security reasons). If logged in successfully, you’ll see a command-line prompt.

4- Install OpenVPN Server on VPS

To set up an OpenVPN server on your VPS, follow these steps:

1. Open your SSH client and enter the following command:

wget https://git.io/vpn -O openvpn-install.sh && bash openvpn-install.sh

2. Press Enter to execute the command. The system will begin installing OpenVPN on your VPS.

3. Once the installation is complete, the command line will display a set of options. Choose: “Add a new client”

4. To select this option, type 1 and press Enter.

5. Create a New Client. The system will prompt you with Name. Enter a name for the new VPN client and press Enter.

6. After the client is created, the system will display the location of the .ovpn file, which contains the necessary key to configure the VPN connection.

7. To access the file contents in the SSH client, go to the folder containing the file using: ls

8. Open the file by running: cat filename.ovpn

9. Press Enter to execute the commands.

10. The .ovpn file content will appear, starting with: client and ending with: </tls-crypt>

Your OpenVPN server is now set up. 

5- Download the ovpn file with the key to the PC

To download an OVPN file from a VPS server using an FTP client, follow these steps:

Open your FTP client and enter the following details:

  • Host: VPS server IP address
  • Username: your login name
  • Password: your password

Click on the "Connect" button.

Once connected, the FTP client window will show two sections: the left side displays folders and files on your PC, while the right side shows the folders and files on the VPS server. To download the OVPN file, simply drag it from the right side (VPS) to the left side (PC).

Note: On a Linux PC, the OVPN file will appear as a regular text file. On a Windows PC, it will display as an icon.

6- Create a VPN Connection

To create a VPN connection for Windows:

  • Install OpenVPN Client from openvpn.net.
  • Copy the .ovpn file to C:\Program Files\OpenVPN\config\.
  • Right-click OpenVPN GUI and select Run as Administrator.
  • Click Connect.

For Linux:

Run the following command in the terminal:

sudo openvpn --config ~/Downloads/client.ovpn

If the IP changes to your VPS’s IP, the VPN will work correctly.

For a VPS VPN setup, it’s better to choose the best VPS providers that support setting up a VPN. To make this choice easier for you, we’ll mention the best providers:

  • MonoVM: Offers high-speed VPS with full root access, SSD storage, and multiple OS options, making it ideal for VPN hosting. Provides global server locations and strong security features. 
  • Cloudzy: Offers high-performance VPS with NVMe SSD, DDR4 RAM, scalable bandwidth, and 99.95% uptime. Provides pre-installed Linux distros for easy VPN setup.
  • Hostinger: Features DDoS protection, a 30-day money-back guarantee, and dedicated IPs. Supports only Linux-based VPS with limited locations.
  • DreamHost: Known for quality and performance but offers only managed Linux VPS with no root access, making VPN setup restrictive.
  • Vultr: Provides multiple locations and partnerships with VPN providers but has additional costs for DDoS protection and a complex pricing system.
  • DigitalOcean: Ideal for developers with advanced security features like SSH keys and cloud firewalls but is expensive and best suited for tech-savvy users.
  • A2 Hosting: Supports various VPN platforms with its QuickInstaller™ system but has high renewal prices and only offers Linux-based VPS.
  • Liquid Web: Provides advanced firewalls and DDoS protection with a free CDN but has fewer data centers and an average uptime of 96%.
  • BlueHost: Primarily a web hosting provider but allows VPN hosting with SSD storage and free SSL certificates. Lacks dedicated VPN features.

When you use a VPN on VPS server, there are some security measures you need to implement to increase security and prevent vulnerabilities:

  • Employ Strong Encryption: To protect your data while it is in transit, make sure your VPN is using extremely strong encryption, such as AES-256-bit encryption. 
  • Update Software Frequently: To address any vulnerabilities that hackers might exploit, keep your VPN and VPS software updated. 
  • Turn on a Firewall: Configure firewall rules (such as UFW or iptables) to prevent unauthorized users from accessing your VPN server and to prohibit unauthorized users. 
  • Use Fail2Ban: Install Fail2Ban on your server to prevent persistent password-guessing attempts by restricting users' IP addresses after an excessive number of unsuccessful attempts.
  • Disable Root Login: Prevent users from using SSH to log in as root, the primary administrator. Make use of a different user who is nevertheless capable of sudo admin tasks.
  • Monitor records: Keep an eye on your computer and VPN records frequently to spot any unusual activity that might indicate an intrusion attempt.
  • Modify Default Ports: Avoid using your VPN's default port. To make it more difficult for hackers to locate and target your VPN server, choose a different port.

If you configure a VPN on VPS, some benefits will be provided for you compared to using a third-party VPN provider. Here are the benefits:

  • Complete Privacy & Security: Unlike traditional VPN providers, if you use a virtual private server (VPS), no one else can see what you do online. You have complete control over how your data is encrypted, what records are stored, and what security rules are applied, ensuring that your online activities remain completely private. 
  • No Data Logging or Tracking: Many VPN providers claim not to track your activities, but occasionally they are compromised, so this proves to be untrue. If you use a VPS, you can disable all logging, ensuring your information remains secure.
  • Protection on Public Wi-Fi: When you use public Wi-Fi at coffee shops, airports, or hotels, hackers will find it extremely difficult to steal your information because your own VPN on a VPS renders your internet traffic unreadable. 
  • Get Around Geo-Restrictions & Censorship: To bypass blocked websites or see content that is only accessible in specific locations, you can set up your VPN in a nation with less restrictive internet regulations. However, in contrast to standard VPNs, you will need to set up multiple VPSs if you wish to move to a new region. 
  • Steer clear of bandwidth throttling and ISP monitoring: Internet service providers frequently monitor your activities and may slow down your connection for various reasons. They can't slow you down because your own VPN conceals your traffic. 
  • Secure Online Transactions: When you shop or bank online, your personal VPN renders your sensitive data unintelligible, protecting you from scammers and hackers. 
  • The ability to select VPN protocols and software: You have a variety of VPN programs to choose from when setting up your own VPN, including WireGuard, SoftEther, and OpenVPN. Additionally, you can modify the encryption parameters to suit your requirements. 
  • No Risk of Data Sharing with Third Parties: If required to, standard VPN providers may be required to provide your data to the government. You don't have to be concerned about your data being sold or shared when you have a VPN on your own VPS. 
  • Economical for Extended Use: In the long run, using your own VPN on a VPS can be less expensive than regular VPNs, particularly if you utilize a low-cost VPS service like MonoVM. 
  • Complete Command Over Terms of Service & Server Location: When selecting a VPS provider, you can examine their policies to ensure that they protect your data and select the location of your server to meet your privacy requirements.

If you’re not sure using the best VPS for VPN, here we mention who should use VPS for VPN:

  • Remote Workers & Digital Nomads: Work safely from any location.
  • Businesses: Keep company information safe and let workers connect securely from far away.
  • Gamers: Play games with less lag, stop your internet provider from slowing you down, and play on game servers in other places.
  • Privacy-Conscious Individuals: Stay hidden online and stop your internet provider and the government from watching what you do.

Conclusion

To make your own VPN on a VPS server, you'll need: a VPS server, a program to connect to it like PuTTY or Terminal, a way to move files (optional), the OpenVPN program, and your VPS login info. First, pick a VPS company like MonoVM, DigitalOcean, Linode, or AWS, and make sure you can install a VPN on it. Then, set up your VPS by choosing an operating system (Ubuntu or Debian are good choices), where you want the server to be located, and how powerful you want it to be. Write down the server's IP address, username, and password. Next, connect to your VPS using PuTTY (if you're on Windows) or Terminal (if you're on a Mac or Linux computer). Install OpenVPN by typing a simple command, make a new user, and create a .ovpn file that has the needed security keys. Download the .ovpn file to your computer using a file transfer program, and set up the VPN connection by installing the OpenVPN program on your computer. If you're using Windows, put the .ovpn file in the OpenVPN config folder and connect using the OpenVPN program. If you're using Linux, use a command in the terminal to connect. If your computer's IP address matches your VPS's IP address, then your VPN is working.

Most VPS providers allow VPN installation, but it's best to check their terms of service before setting up.

Linux distributions like Ubuntu and Debian are recommended for their stability and security.

Basic command-line knowledge is helpful, but with detailed guides, even beginners can set up a VPN.

Download the .ovpn file, install an OpenVPN client, and use the file to connect to your device.

It offers more control, better privacy, and no data logging, but requires manual setup and maintenance.

Unlike commercial VPNs, changing locations requires setting up another VPS in the desired region.