cd ~/steamcmd/arma3
vim server.cfg
If you don't know how to use vim, use nano instead.
nano server.cfg
See server.cfg for documentation and examples.
The first time you run the server it will auto-create a profile file at ~/.local/share/Arma 3 - Other Profiles/server/server.Arma3Profile. Edit this file to fully customize difficulty settings. NB: the -profiles= parameter is broken on Linux - you must place your profiles in this directory.