I have decided to go with LXD

I have you covered. Have a look at my tutorials at

Ubuntu 16.04.5 comes with LXD 2.0.11 (Long Term Support, supported until year 2016+5=2021).
My beginner tutorials were written for LXD 2.0.x.
You need to install the lxd package and then make a decision as to where to store the containers.
You would need to arrange for some dedicated space (separate partition).