I have a small VPS running a few scripts and some personal projects without any private information (just the keys for the services needed).
I want to expand it to selfhost more stuff like Google photos alternative, knowledge DB, git, etc., but I’m not sure how is my data protected inside a VPS.
There was a post mentioning everything is visible to the provider via the hypervisor, so I was wondering if an encrypted volume would make no difference for protecting any data uploaded there.

Am I being too paranoid? Or should I be investing in a small physical server?