Dummy questions about setting up git on amazon cloud ec2

Dummy questions about setting up git on amazon cloud ec2

first of all, apologize for dummy questions that I might throw here. It
would be nice if you could point the directions where should I go from
here.
I'm totally new to version control(as well as git) and cloud system.
However, it came to the point that I have to develop php web based
application on AWS EC2 instance and make codes contributable for future
developers.
I did successfully create EC2 instance that run PHP/MySQL and map the
domain with Elastic IP. So the website is now publicly accessible via port
80.
I also installed git using $sudo yum install git and configed user.name
and user.email
I then, go to root folder of the website (e.g. public_html) and run 'git
init' which create the fold ".git" and I then add file using "git add ."
and commit "git commit -m 'initial upload'"
Is that the right way to go? Would it be ok to have the project folder
sitting on /public_html (where accessible from anyone).
If above is ok, then where should I go from here? I would like to have git
server running on EC2 that allow developers to connect from their local
machines (e.g. Eclipse) while being able to keep the backup and compare
the different between codes.
What detail do I suppose to give developers so that they can connect to
git server and working on project?
I quick direction or few keywords to do more research would help.