I want to rent dedicated server to run a full node to receive bitcoin for my website. Is this safe if I encrypt my wallets or should I own physical server?
If you need only to receive bitcoins, or better only to check the balance of your wallet, you can setup a read only address that leave no way to send money through this server.
To setup read only addresses there are several command:
Instead if you need a full node that receives and sends bitcoins automatically, (despite the fact that the encryption is secure) the wallet cannot be encrypted and it can be risky (at least more than having physical possession of the server) and you have to evaluate if the savings of buying a VPS instead of a physical server compensate for the greater risk of theft.