Improve server performance

Server NGINX
1

Hi, I am hosting a couple of wordpress sites on a very light VPS with
1vCPU, 512Mb Ram and 10Gb SSD. The performance is not very impressive.
Are caching, using gzip, etc., good means to improve the performance of
my VPS despite the fact that it only has one vCPU and 512 Mb of ram.

Thank you

2

caching - will improve performance . Look for caching at the opcode
level
and fastcgi_cache along with the associated wordpress plugin to
invalidate
cache

gzip - will be taxing again on your single vCPU

3

Anoop A. wrote in post #1177127:

caching - will improve performance . Look for caching at the opcode
level
and fastcgi_cache along with the associated wordpress plugin to
invalidate
cache

gzip - will be taxing again on your single vCPU

Thank you very much. So what should I do is to enable cache and disable
gzip right?