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Hi @georodrigues,
If you are being asked for your Password, if would mean the SSH key is not working properly.
Now, I do have one question, did you add the SSH key and then created your droplet by selecting the said SSH key or did you add the key after you’ve created the droplet?
If you did the latter, the SSH key won’t work, it would need to be added to your Droplet. If you are unaware how to do so, you can check the following two articles
https://www.digitalocean.com/community/tutorials/how-to-set-up-ssh-keys-on-ubuntu-1804
https://www.digitalocean.com/docs/droplets/how-to/add-ssh-keys/
Both should help you with adding the key to your droplet.
Regards, KDSys