I have deployed a droplet, and what i want is to run a VM instance inside the droplet and want to give it a public IP so it can be accessible from the internet. Is there a way to do it somehow?

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As each Droplet only gets IP public IP address, you could try setting up a NAT and then port forward the ports you need from the nested virtual machine through the host’s only networking route.

In general, I would suggest using containerization for better performance and you would be able to easily expose your container ports without the need of setting up NAT.