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starting out recording

my band is just starting otu to record. we have some decent speakers, a laptop, a tascam audio interface box (only one track at a time) and cooledit pro multi track software. is ti ok to record each instrument separately. i've been told it is better to get a multi track recorder and then record most of us together. however, that would require ALOT of money, and i would think that it'd be better to just do each instrument.
 
The majority of hit albums in the last two decades have been recorded one instrument at a time--this is also called, "multitracking." Whoever told you it was a bad idea is giving you a personal preference, not a hard fact.