In TypeScript, particularly when using React, it’s important to avoid nesting components inside other components. Components are meant to be reusable, independent, and encapsulated.
When components are nested, it could lead to unnecessary re-rendering and performance degradation, as the nested component is re-created every time the parent component renders.
To avoid this, define your components at the top level of your module and then use them inside other components by referencing their names. This way, the components are only created once and reused, leading to better performance and easier code management.