Questions for the XMPP users.
Yay, that's me! I'm a light duty user, others prob know more, but I will try.
Does the provider matter, what one?
I self-host on a VPS, and don't need a provider. It was not too hard to setup. But if you go that way, be sure to use OMEMO for E2EE. There was a way to force it for connections, not just allow it, but I forgot the details now.
Unlike some heavier options, XMPP server will run on a potato. Well assuming you are just doing it for you, friends, family, neighbors, w/e. Not like... the whole ass country you're in or sth.
With my own server, I could segment off from everything else. Which is what I wanted for my friends and family. But you can also federate if you want too.
Can i private/direct message users without setting up my own private provider?
If I'm getting your q, then yes.