TOOL LAB Developer Tools Intermediate Tested October 2026

DeepSeek: Run a Local Coding Assistant (2026)

⚡ VERDICT

Best for: Developers who want a free, offline coding assistant and are comfortable running local models.

Skip if: You need Copilot-level speed and context on large files, or you have less than 16GB RAM.

Price: Free (local); DeepSeek API pricing varies — check official page. Checked 2026-10-15.

Skill level: Intermediate

Time to first result: [TODO: our test] measure, don't estimate

Score: [TODO: our test] measure, don't estimate

🚀 Quick start

Install Ollama and pull the DeepSeek Coder V2 model locally.
Install the Continue.dev extension in VS Code.
Point Continue.dev at your local Ollama model in config.json.
Use chat for code explanations, refactors, and short completions.

💡 Why use DeepSeek for this

DeepSeek Coder V2 is an open-weight code model that can run locally through Ollama and integrate into VS Code via Continue.dev, giving you a private, offline coding assistant without a cloud subscription. This guide covers the practical workflow: installing Ollama, pulling the model, wiring up Continue.dev, and using chat for explanations and refactors. Plan gotcha: DeepSeek's hosted API has its own pricing and rate limits, but the local route is free and depends only on your hardware. Date checked: 2026-10-15.

🛠️ How to Run a Local Coding Assistant (4 steps)

Step 1

Install Ollama by visiting ollama.com and downloading the installer for your OS. Run the installer, then open a terminal and verify with `ollama --version`.

Step 2

Pull the DeepSeek Coder V2 model by running `ollama pull deepseek-coder-v2` in your terminal. This downloads the model; wait for the success message.

Step 3

Launch VS Code and go to the Extensions view (Ctrl+Shift+X). Search for 'Continue' by Continue.dev and install it. Restart VS Code if prompted.

Step 4

Open Continue's configuration: click the gear icon in the bottom-left corner of the Continue chat panel (or open the Command Palette and search 'Continue: Open config file'). In the `config.json` file, replace the models array with: ```json "models": [{ "title": "DeepSeek Coder V2 (Ollama)", "provider": "ollama", "model": "deepseek-coder-v2" }] ``` Save the file.

📦 What you'll get

After setup, you can open the Continue chat panel in VS Code and ask it to explain a selected function, refactor a snippet, or generate a short function. The model runs locally and responds in the chat panel.

💰 Pricing (checked 2026-10-15)

Plan	Price	What you get for this workflow	Official link
Local via Ollama	`Free`	Run DeepSeek Coder V2 on your own hardware; no cloud account required.	pricing ↗
DeepSeek API	`Varies by usage`	Hosted API access with rate limits and pricing per token; check official page.	pricing ↗

📋 Copy-paste prompts

PROMPT 1 — Generate a Python function

"Write a Python function that validates an email address using regex and returns a boolean. Include docstring and type hints."

PROMPT 2 — Refactor existing code

"Refactor this JavaScript function to use async/await instead of callbacks. Explain the changes."

PROMPT 3 — Explain code

"Explain what this code does line by line. Assume I'm a junior developer."

⚠️ Common mistakes

❌ Forgetting to keep Ollama running in the background.

Why it happens: Ollama stops after terminal closes.

✅ Quick Fix: Run `ollama serve` in a separate terminal or set it to start on boot.

❌ Using the wrong model name in Continue config.

Why it happens: Typo or incorrect Ollama model name.

✅ Quick Fix: Verify with `ollama list` and copy the exact name.

❌ Expecting Copilot-level performance immediately.

Why it happens: Local models are slightly slower and less context-aware than cloud models.

✅ Quick Fix: Be patient; it works best for short, well-defined code snippets. Use chat for larger tasks.

⚖️ DeepSeek vs Alternatives

Tool	Price	Best For	Verdict
	`Free tier available; Pro $10/month; Business $19/user/month (checked 2026-10-15)`
	`Free for individuals; Teams $12/user/month (checked 2026-10-15)`

❓ Frequently Asked Questions

Q: Is DeepSeek Coder V2 free to run locally?

Yes, the model weights are open and Ollama is free. You only pay with your hardware and electricity.

Q: How much RAM do I need?

At least 16GB RAM is recommended; 32GB is better for larger models. The 16B parameter version may need more.

Q: Can I use DeepSeek Coder V2 offline?

Yes, once the model is downloaded via Ollama, it runs locally without internet.

Q: Does Continue.dev work with other local models?

Yes, Continue.dev supports many providers including Ollama, so you can swap models.

Q: Is DeepSeek's hosted API free?

No, the hosted API has its own pricing and rate limits. Check the official pricing page.

🛡️ Facts checked against official pages on October 2026:

ollama.com ↗ · platform.deepseek.com ↗ · continue.dev ↗ · github.com ↗ · codeium.com ↗