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My question is how do I have it so that when I set it to be mywebsite.com it will actually mean something
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If you're only hosting one website than it doesnt matter. You need a DNS service to point mywebsite.com to your public IP address. Then, if youre running a firewall/gateway, you need to configure it to forward port 80 requests to your servers lan ip. Once that's done, assuming you only have 1 documentroot, apache will handle the rest.
If you're using name based virtual hosting in apache then you would need to configure apache to respond differently to different domain requests. But again, with just one website and therefore one documentroot, any request on port 80 would result in the same web content being displayed.
I also recommend easydns.com for a cheap 3rd party dns host.