You shouldn't use more than 2-3 words in your domain name. The goal is to make it easy to remember for the people. Your customer may have trouble remembering or spelling words or names that are complex or uncommon. This is why you should use a domain name that is short and easy to remember.
The answer is yes; your domain name can affect your SEO. However, it is essential to note that many other factors are involved in SEO ranking. In addition to having high-quality content, your website name should be short and easy. You should not use hyphens or numbers and use relevant words.