Yeah step 1 solved step 2 🙂
What i did:
I created a domain on my server control panel (then a new domain folder appeared on the server)
Through DNS control i added a sub-domain (I just need to add the website server IP and the sub-domain name, it all connected automatically)
Using server control panel i set up another MySql database (for the new WP website).
Then I installed the new WP site in the new domain folder and connected it to the new MySql database i created earlyer.
And it worked. Hope it helps someone else.
But I have one more problem now..
I did more research on SEO and it appears that blog.website.com isn’t as good as website.com/blog …
Now I have to figure out how to install a new wp website in a sub-folder and how to link the website.com/blog to that place…