In React, there are two ways to write components: functional and class-based. Functional components use a JavaScript function that returns JSX, while class components extend `React.Component` with a `render` method. Both have their own syntax for passing props and handling state, but functional components offer simplicity and ease of use through the introduction of React Hooks such as `useState` and `useEffect`. Class components can be more confusing due to the need for constructors and lifecycle methods, which are being phased out in favor of hooks. As a result, functional components are becoming increasingly popular and are now widely supported by the React team, making them a preferred choice for modern React development.