Is it possible to install macOS on Thunderbolt 4 SSD?

I recently bought the base model M4 Mac mini with Thunderbolt 4 external SSD, and I haven't got them yet. I saw the videos of migrating home directory to external SSD for greater storage, but I don't think that is the permanent solution since the contents that forced to be in the system installed storage grows over time (ex. /usr, /var, /opt, /Applications, etc.). I remember installing OS X in external SSD was possible back in 2015, and I don't know if it is possible until today.

Is it possible to install macOS on external storage? If so, why is there not much tutorials that does it other than the reliability? Is there any limitation if macOS is installed on external storage?