More or less, yes. Rather than say 'compress on the way out, 'compression on playback' -in the mix.... so an internal compressor like in cubase takes the track thats been recording and compresses it on its way out, so an external compressor, will compress it before it goes in and before its recorded correct? that way if i decide to sing a note with too many decibles the compress will compress it and the waves on cubase tracks wunt be stopping at zero db like they are doing now rtight?
There is also using (or re-using) that hardware (your 'external) to mix with as well as record with.
But in the case with the wide recording range of 24 bit in particular, set your record levels so you don't have to compress for protection. Instead do it to make the recording closer to how you want it to sound, or because the hardware brings something you can't get with the software.