Hi @Magknuto. I can help with your questions.
I want to know where should I deploy the server(local or cloud)?
This depends on whether you want to launch the game on mobile, desktop, and/or web or whether it’s a hobby project for you to run locally on your machine. If it’s something you’d like to launch for players then you most definitely want to use a hosted server somewhere online (i.e. in the cloud).
If cloud is the answer what specs would I need(also some recommendations)?
This depends entirely on how many players you want to support online at once, what other gameplay features of the server you’ll use, where you’ll run the database server(s). If you don’t know or have a way to estimate these numbers and usage patterns just start simple and run larger servers or move to our Managed Cloud service later.
Will I need to pay anything and if so how much?
Nakama is free and open-source on GitHub. You can run it wherever you like and on whatever cloud provider or hardware you want although performance will be dependent on how you’ve set things up of course. We have a Digital Ocean droplet on the marketplace which is good to use when you’re ready to set something up in the cloud for a small project.