How do you document a React Native/React/Node project within the team?

I would like to learn of ways that yourself or your team handles documentations within your JS-related projects, such as React, React Native, or Node. This includes custom hooks, API methods, usage guides, helper function usage or any other functional methods that requires a documentation to understand; that gives future code maintainers a common guide to understand the methods, without having to read the individual method codes.

I do have a few ways in mind:

1. Using .txt files within the JS project folders to note down example usage
2. Having a common text document stored somewhere within Google Docs, Word or related platforms
3. Having a TypeScript related documentation system

Does anyone have any such practices within your team, and how is it working out?