What you need to know
Passing a small number of props through a few layers is often easy to understand. Context becomes useful for app-wide settings such as theme or locale that many components need.
How to apply it
Start with props. If the same value crosses many unrelated layers, create a focused context and keep its provider near the part of the app that uses it.
Common mistake to avoid
Do not put every changing value into one giant context. Broad updates can rerender many consumers and make dependencies difficult to trace.