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Dedicated IP vs Domain Explained

Many people are unsure if they need a dedicated IP, a domain, or either of the two at all. Here's a walkthrough of what both are.

Dedicated IP:
Minecraft servers by default operate on the port 25565. When you enter an IP into your launcher without a port, it assumes the port to be 25565 so you do not have to put one in. Unfortunately, there can only be one server per IP address with a 25565 port. That server has a dedicated IP, as their port is 25565. All other servers will have their players put a port in. So if you have a dedicated IP, your address given to players would be for example, whereas someone else may have, as they do not have a dedicated IP. 
The purpose of a dedicated IP is primarily to make it easier for your players to remember your IP.

Many people confuse dedicated IPs with domains. A domain is a web address that points to your server IP. An example would be PvPCraft.Com. With a domain, you are able to create multiple 'records' that point to different addresses and have different prefixes. This is very useful for creating an IP that players can remember. You can buy a domain here or anywhere else that sells them. After purchasing, you can configure your domain to point to your server IP, so that your final address could be MC.PvPCraft.Com for example. The beginning part can be whatever you want (Factions.PvPCraft.Com, Peaceful.PvPCraft.Com, anything!)
Domains are .com/.net/.org/etc web addresses that point to your server IP so players don't have to use a numbered IP address to join.
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