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How to use a custom nameserver for my domain (like ns1.mydomain.com, ns2.mydomain) instead of ns1.hostingcompany.com, ns2.hostingcompany.com? Will a CNAME help?

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Yes, you do this by setting up a CNAME as long as you can maintain the DNS entries for the domain.

Setup varies depending on your DNS servers.

ns1 CNAME points to IP or servername.mydomain.com in the setup

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You need go for VPS or higher plan. If you go for fully managed VPS this nameserver will be done freely by your hosting provider.

A fully managed vps can start from $10-$50.

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