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Yes. You can’t create a community onto a different instance from your own, but you can be added as a moderator of one.
Yes. You can’t create a community on another instance but you can be appointed as a mod.
Iirc its possible but likely will cause issues at some point. Your best bet is to have an account on the same instance become the mod
likely will cause issues at some point
What sort of issues?
I saw a discussion about it a few weeks back iirc it was mostly that you might become unable to access the instance if defederated or something. Might not be a big deal i guess?
There’s a good argument for having an alt account as backup, but you shouldn’t ever have to use it barring some exceptional circumstances