A dedicated IP is a unique IP address, reserved, and assigned to the default port. This is not to be confused with a custom hostname (such as "play.mymc.io") or a dedicated / bare metal server. However, just like using a domain/subdomain IP a.k.a. "custom IP" (see how to set one of those up here), a dedicated IP is mostly useful for convenience.

For Bedrock servers, the port would be 19132 and, as this is the default port, players would not need to modify the port field upon connecting.

For Java Edition servers, the port would be 25565 and players may connect with or without the port attached to the server's IP address.

Aside from making it easier to connect to the server, having a dedicated IP can also make setting up DNS records easier, configuring certain plugins easier, etc.

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