Can anyone guide me how to migrate xenforo to digital ocean hosting ?

Digital Ocean is fine though you will hear arguments about Linode providing more cpu power for the dollar.

If you build a VPS with DO, you are your own security. If you do not have the skill the setup and manage a linux server in it's rawest form then you are in for a world of hurt.

If you know how to manage a linux server, a community that small will easily get by on the $5 a month plan IF the server is configured properly. An improper config on a minimal server is going to leave the thing starving while a good config could handle 250 users / 1000 requests per second. I would recommend something better if you can afford it. 2GB of ram and a couple of dedicated cpu cores will perform for a small forum.

I doubt you are ready for this but my first piece of advice for DO is to enable swap.
 
as per my friend who is doing this migration, Now he have database with old version of xenforo and he have updated xenforo with newer version.
hence not working.
can you please guide way forward.
Tnx

If you uploaded an old database and the latest copy or a newer version of xenforo you should only need to run the install to update everything. Off the top of my head I forget but it should be like www.yourdomain.com/install/index.php or maybe its install/install.php
 
as per my friend who is doing this migration, Now he have database with old version of xenforo and he have updated xenforo with newer version.
hence not working.
can you please guide way forward.

Your friend apparently does not know what they are doing. It should have been a simple matter of
  • exporting your old DB from the original host
  • copying all the forum related files over to the new host
  • creating a new mySQL user on the new host
  • granting that new user rights to a DB that you would import the old DB into
  • import the old DB into the new server using the credentials you created
  • placing the files in the correct location on the new host
  • modifying the library/config.php to use any possible DB changes that had to be made (different username/password or DB)
Once that is done and confirmed working then you simply install the newer XF files and run the update for it as normal.

Of course, that does depend upon the fact that the VPS/dedi has been configured correctly.
 
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