When using React's useState hook, it's easy to fall into common mistakes that can negatively impact performance. To avoid these issues, it's essential to understand the correct usage of useState.

Firstly, initializing state with an expensive function can lead to unnecessary computation on every render. Instead, use a function inside useState to ensure the function is only called during the initial render.

Secondly, when updating state, it's crucial to consider the previous value. Failing to do so can cause issues if multiple updates are triggered in quick succession.

Thirdly, placing hooks inside loops, conditions, or nested functions can break React's state management mechanism. Keep useState outside of these constructs to ensure proper state management.

Lastly, avoid directly mutating state as it can lead to unexpected bugs and issues. Instead, create a new object using the spread operator to ensure immutability.

By following these best practices, you can improve the performance and efficiency of your React application.

Source: https://dev.to/sonaykara/the-4-most-common-mistakes-when-using-usestate-in-react-1ji8