The use of VPN's is basically snake oil and does nothing anonymous-wise. It is only used to hide your IP from potential "hackers" and does not provide anonymity for any, lets call it "intricate", events. Surprisingly there is no way to stay 100% anonymous on the internet. However, a good option compared to using a VPN is Tor or hosting your own offshore servers as your own VPN.
I rented a VPS from DigitalOcean to use as my family's private VPN server, is this what you mean by renting a private server?
By doing this, the provider still can't collect our data?
Since the beginning, I didn't believe in the existence of VPN services, whether it's free or paid, they (third parties) still have the possibility to collect our data on the internet.
If this is the right and safer choice, then $ 5 per month should be enough for my family to rent a little private server specifically used for accessing sensitive data on cryptocurrencies, especially wallets with balances.