Tukukkk

Until now we were used to Flux flow where data entered into the component through props. So you could look at the Props signature and see what is the component requirements.

Hooks are an amazing feature, but as we transition to them I find that they provide another entrance for dependencies which is harder to manage since you have to look at the actual component code to see it.

Of course, we can use Hooks only in container components, but I feel that some of their main selling points are their ability to reduce nesting and HOC.

What are the best practices (currently) for deciding which component should use a hook and which should use render props?

Hooks are still in alpha and the devTools support is still in development for it. And according to the React FAQs hooks can be used as an alternative to renderProps and HOCs, but can coexist with them

Often, render props and higher-order components render only a single
child. We think Hooks are a simpler way to serve this use case. There
is still a place for both patterns (for example, a virtual scroller
component might have a renderItem prop, or a visual container
component might have its own DOM structure). But in most cases, Hooks
will be sufficient and can help reduce nesting in your tree.

Hooks allow stateful logic in functional components and would be similar to class components in React.

Hooks are harder to manage since you have to look at the actual
component code to see it.

Not really, since you can pull out the custom logic that you have in your HOCs or renderProps in a custom hook and look for its implementation instead of understanding what actually is going on in the actual component.