set up a postgres database on a cloud vm, install docker to it, and link in the docker image

Hello, I have not used postrgres, vm, or docker before, but I would like to use this docker image to clone the api and host it on a cloud vm. Someone said I should set up a postgres database on a cloud vm, install docker to it, and link in the image. Can anyone tell me if this is the correct way to go here, and how exactly I can do that? I see web services and postgres databases as options on cloud providers but not sure if I need one or both or how to proceed here. Also how much gb minimum plan do I need to run this to test it? The code is from GitHub - 0xProject/0x-api: An HTTP Interface to 0x liquidity and tooling and the image is here on dockerhub Docker Thanks for any insights or help with getting this running!!

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