Note to self, after fiddling with the same errors again and again while setting this up, I'm writing down what I repeat every time I setup a new droplet @ digitalocean.
Create a new droplet @ cloud.digitalocean.com and, when created, copy the IP address to setup a domain name pointing to it right away.
I go at https://www.hover.com/domains and add an A record, I'll assume dev.domain.com
in this guide.