Updating the Postfix configuration to use SendGrid as a relay host is easy. For more advanced configuration scenarios, you’ll need to refer to the Postfix documentation.

Find your Postfix config file, typically /etc/postfix/main.cf, and add the following:

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smtp_sasl_auth_enable = yes 
smtp_sasl_password_maps = static:yourSendGridUsername:yourSendGridPassword 
smtp_sasl_security_options = noanonymous 
smtp_tls_security_level = may
start_tls = yes
header_size_limit = 4096000
relayhost = [smtp.sendgrid.net]:587
Make sure to restart Postfix:
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$ /etc/init.d/postfix restart
Info If you are getting no mechanism available error messages it generally indicates that you are missing some SASL authentication libraries.

Install the missing module dependency using apt-get (i.e., Debian, Ubuntu):

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$ apt-get install libsasl2-modules
Or using a yum (i.e., RedHat, Fedora, CentOS):
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$ yum install cyrus-sasl-plain