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Routing traffic through a VPS - How is it done and what are the Pros?

My current setup is that I have a home server running a number of services that are only accessible to myself on my local network (Jellyfin, Home Assistant, etc.) and a DigitalOcean droplet I rent that runs a number of public facing items (personal websites). I've been looking into running my own Matrix server for myself and some friends, but while it will be public facing, I would prefer to run it on my own hardware for cost and storage reasons.

I have gotten it up and running the "old fashioned way", by pointing my domain at my home network, setting up port forwarding and a reverse proxy. Is this the recommended solution? I have heard vague references made to somehow using a VPS service to forward specific traffic to a home server via WireGuard. I'm not sure how this is done, or really what the benefits are, so I was curious if anyone had any advice.

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