When working with Vue 3's Composition API, a common question is whether to use `ref` or `reactive`. While `ref` is the fundamental building block for reactive data in Vue, it has some downsides, including requiring an understanding of JavaScript proxies and adding bulk to the code. On the other hand, `reactive` is much closer to what developers are already familiar with, being similar to the data option in the Options API. However, using `reactive` requires no unpacking values like `ref`, making it more intuitive and easier to use. Ultimately, `reactive` is recommended as the primary way to manage reactive data in Vue 3's Composition API, but there are still use cases for using `ref`.