Go to domain name registrar and update nameservers. This is good.
Create DNS record at DigitalOcean account. Use this again.
Create your ‘droplet’. What this entails is specifying a hostname (which can be distinct from your domain name), choosing a monthly plan (choose the cheapest one for now…resizing is easy), selecting the ‘WordPress on 14.04’ in the ‘Applications’ tab, and adding an ssh-key.
If you don’t know how to generate ssh-key’s, go here. Ignore steps 4 and onward.
Add your ssh-key.
Read this. When it says ‘Finishing Installation’, stop, and go onto the next step.