nirun
3
i would suggest trying with software first to see how far that gets you. there’s some nice plugins out there. Elysia Mpressor is a great one.
Lots of interfaces offer DSP powered channel strips that allow you to achieve the same result with improved latency
I opted for a hardware compressor because it’s far more convenient for me to turn an indented knob rather than click through my DAW. I also like to keep my signal path as short as possible
I will not comment on the audio quality comparison because you will have to use your own ears and be the judge 
For recall, automation, and flexibility you can’t go wrong with software… i used some of the focusrite dynamics plugins that came bundled with my scarlett interface and it was useful
If you want something for live tracking then hardware might be a good choice, FMR RNC, chameleon labs 7720, Wa76, or drop some $$$ on 500 series and go nuts.
There’s a ton of great options