Domain Setup

I'm having difficulty figuring out how I should setup my domain with my VPS running Virtualmin. I believe it would be best to use nameservers, as many tutorials do, though it seems that in these tutorials they use nameservers which contain the domain name. How can a domain be connected to its own nameservers? Do I need to create a second domain which points to my VPS with an A-Record, create nameservers for that, and then set the DNS for my primary domain to those nameservers?

Any help would be greatly appreciated.