• Used for referencing elements () ie.

<video ref={videoRef} />

• Used for internal state that does not affect the DOM  ie. 

import { useRef } from 'react';

function MyComponent() {
  const inputRef = useRef(null);

....

  return <input ref={inputRef} />;

}

import { useRef } from 'react';

export default function Counter() {
  let ref = useRef(0);

  function handleClick() {
    ref.current = ref.current + 1;
    alert('You clicked ' + ref.current + ' times!');
  }

  return (
    <button onClick={handleClick}>
      Click me!
    </button>
  );
}

import { useState, useRef } from 'react';

export default function Stopwatch() {
  const [startTime, setStartTime] = useState(null);
  const [now, setNow] = useState(null);
  const intervalRef = useRef(null);

  function handleStart() {
    setStartTime(Date.now());
    setNow(Date.now());

    clearInterval(intervalRef.current);
    intervalRef.current = setInterval(() => {
      setNow(Date.now());
    }, 10);
  }

  function handleStop() {
    clearInterval(intervalRef.current);
  }

  let secondsPassed = 0;
  if (startTime != null && now != null) {
    secondsPassed = (now - startTime) / 1000;
  }

  return (
    <>
      <h1>Time passed: {secondsPassed.toFixed(3)}</h1>
      <button onClick={handleStart}>
        Start
      </button>
      <button onClick={handleStop}>
        Stop
      </button>
    </>
  );
}

import { useRef } from 'react';

export default function Form() {
  const inputRef = useRef(null);

  function handleClick() {
    inputRef.current.focus();
  }

  return (
    <>
      <input ref={inputRef} />
      <button onClick={handleClick}>
        Focus the input
      </button>
    </>
  );
}