1. Project Setup

Create a new project

From the command line terminal, run this command:

foo@bar:~$ rails new my-projects-api -d postgresql --api

create  
      create  README.md
      create  Rakefile
      create  .ruby-version
      create  config.ru
      create  .gitignore
      create  .gitattributes
      create  Gemfile
         run  git init from "."
...
      run  bundle install
...

As you can see, some folders and files are created as well as some gems are installed. Now, move on to the project folder:

foo@bar:~$ cd my-projects-api

Database

We can proceed to update the file config/database.yml to properly set up the database.