Wow, that's about 1/5 of the price of my current DO test droplet. Think i am going to switch soon if there isn't a catch - i wonder why there is such a huge gap in prices?
I wonder if you can go even lower as i've never heard of multiple companies mentioned in this thread, Hetzner being the other one that's about double this but half DO.
The catch is that you're comparing VPS prices to IaaS prices. They're similar and can be used for many of the same things but are not the same.
With the VPS, you'll be responsible for a lot of the things that the IaaS provider would otherwise handle. However, you can install Dokku/etc. on your VPS and run your own self-hosted IaaS and approximate what you would get from DO/Heroku.
I wonder if you can go even lower as i've never heard of multiple companies mentioned in this thread, Hetzner being the other one that's about double this but half DO.