What are effective ways to optimize and cache Node.js REST API responses for better performance?

To optimize and cache Node.js REST API responses, start by implementing server-side caching with a tool like Redis or a similar caching system. You should cache frequently accessed data to reduce database load and response times and use HTTP cache headers to enable client-side caching. Optimize your database queries and indexes for faster data retrieval and consider using compression middleware like compression in Express.js to reduce the size of the responses. Last but not least, consider implementing load balancing and rate limiting to manage server load effectively.