I am being asked for Host-name at signup page. What is it?

A Host name is required to assign a unique name to your VPS. Every computer has a name (called host-name). Often, this will actually be a real DNS name, but technically it can be anything.

For example, you own the AccuWebHosting.com, so it is always common for you to pick a host-name using it, for example, you may choose vps.accuwebhosting.com as your host-name.

If you do not own a domain name or just do not care, you can technically enter anything that's a valid host-name. For example, you could enter
"vps.yourname.com".
The host nameservers can be easily changed after the installation, if you ever desire so.
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