i use both.
actually, i use compression at 3 different levels:
1. at tracking, with an external compressor (dbx 160)
2. mixdown, at individual track level.
3. mixdown, across 2-bus.
now, i also use limiting, but that's another topic.
i don't use any one level very hard, and what i'm looking for is an overall gentle effect, that is cumulative.
i'll do the odd hard compression or limiting for effect...
and i do limiting on ALL of my bass tracks, and a lot of times across the drum sub bus.
i have, at times, put a waves L2 limiter across the master bus, set where the meters don't even move, and i STILL hear an effect to the signal.
i'm still working this scenario out.
takes a lot of experimenting, listening long after the fact, revisiting the approach, and it's constantly moving and progressing.
it's hard to discuss specifics on any of this, because every song is unique (for me), and unless you are stuck in one specific genre with a specific sound that comes up over an over again, then you pretty much have to deal with it as you go along, song by song, and each song will require something different.
rule of thumb:
once you got things setup across the master bus, in terms of compressors and "GLUE", when you are almost finished with the mix:
BYPASS everything.
and see if it really still sounds better.
i mix into a compressor on the 2-bus from the beginning, it took a LONG time to figure out where i wanted to be with the compressor settings before i could trust it.