diff --git a/beta/src/content/learn/your-first-component.md b/beta/src/content/learn/your-first-component.md
index 23fab3c4..df1591f7 100644
--- a/beta/src/content/learn/your-first-component.md
+++ b/beta/src/content/learn/your-first-component.md
@@ -176,6 +176,37 @@ Components are regular JavaScript functions, so you can keep multiple components
 
 Because the `Profile` components are rendered inside `Gallery`—even several times!—we can say that `Gallery` is a **parent component,** rendering each `Profile` as a "child". This is part of the magic of React: you can define a component once, and then use it in as many places and as many times as you like.
 
+<Gotcha>
+
+Components can render other components, but **you must never nest their definitions:**
+
+```js {2-5}
+export default function Gallery() {
+  // 🔴 Never define a component inside another component!
+  function Profile() {
+    // ...
+  }
+  // ...
+}
+```
+
+The snippet above is [very slow and causes bugs.](/learn/preserving-and-resetting-state#different-components-at-the-same-position-reset-state) Instead, define every component at the top level:
+
+```js {5-8}
+export default function Gallery() {
+  // ...
+}
+
+// ✅ Declare components at the top level
+function Profile() {
+  // ...
+}
+```
+
+When a child component needs some data from a parent, [pass it by props](/learn/passing-props-to-a-component) instead of nesting definitions.
+
+</Gotcha>
+
 <DeepDive title="Components all the way down">
 
 Your React application begins at a "root" component. Usually, it is created automatically when you start a new project. For example, if you use [CodeSandbox](https://codesandbox.io/) or [Create React App](https://create-react-app.dev/), the root component is defined in `src/App.js`. If you use the framework [Next.js](https://nextjs.org/), the root component is defined in `pages/index.js`. In these examples, you've been exporting root components.