Cannot find proper step by step REST API guide to use OAuth 2.0 for Okta APIs

I am looking for docuemtnation or guidance how to connect my nodejs sdk client code ( @okta/okta-sdk-nodejs) not via static token which can be configured under : Admin console-> Security → API → Tokens tab .
is there an alternative to use the oauth2 ? do i define my application as a new application in okta admin console ?
Would love to get guidance on that.

Take a look at this guide that walks you through how to set up the API Services application within Okta.

Once that’s done, you can update/configure the Node SDK to use OAuth.

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