Linking the websites to free plan of cloudflare is it will reduce the cost on Digital Ocean.

or the monthly plan on digital ocean doesn’t need to link to CloudFlare to reduce the cost.

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It depends on several factors. If your droplet is using a lot of HTTP bandwidth (very busy site) then CF will help offload some of that bandwidth and reduce cost if you exceed or come close to your droplet transfer limit. So if you push a lot of images and static files out, CF will help. But if you have heavy server-side code that uses a lot of CPU/RAM/disk then CF won’t help much.