Query regarding subdomain

I have a few doubts regarding adding the custom domain. Specifically a subdomain. Don’t have much knowledge in this specific topic, so asking.

Let’s say I have a domain - mywebsite.com

  1. I have the main website hosted somewhere else (eg. cloudways). But I want to create another website here in Divhunt. So I created a subdomain - demo.mywebsite.com using my DNS provider.
    Then I created a project here and added the subdomain here.

  2. I created two projects here in Divhunt. Added both my main domain and subdomain to those two websites.

So, can you tell me in both cases, will it work? or only second case will work.

Both options will work. Subdomains are treated same as domains.

Great, Thanks for the confirmation!