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How can I host a domain/website on my new VPS?
Yes, you can use their DNS servers. Find out from your VPS the IP address of your server, then go to NameCheap and add an "A record" (enter the ip address) for your domain name on their DNS server. That'll point your domain name to the ip address. Then on your VPS server, configure Apache for your web site. See the above link for instruction.