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Depends what kind of effect.
This doesn't only apply to Cubase, but to general mixing.
A basic rule would be : spectral (EQ, filters, ...) and dynamic (compressors, gates, expanders, ...) effects go on inserts.
Temporal effects like reverb and delay go on sends.
If you want to put a spectral or dynamic effect on one track, let's say a compressor, just go to the mixer page (in later versions like SX you can even do it in the inspector of that track) and put the effect in an insert slot of the track you want the effect to work on.
For sends, this depends on the version you use.
I'm not sure which version you are using. But just me say how you'd work in SX 1 and 2, as those methods differ (don't exactly remember how Cubase VST handled it).
SX 1 : open VST Sends window (it's in a menu), and select the wanted effect. Then go to the track you want to put an effect on, and locate the sends section. In that section you have different slots. Select the effect you want (it HAS to be setup in the VST sends window first) and adjust the slider for the amount of signal you want to put in the effect.
SX 2 : create an FX channel, it will ask you what kind of effect you want it to be, select it from the list. Now same as in SX1, go to the sends section of the track you wanna affect, select the right FX channel in the slot, and again, open up the fader to send it to the effect. The wet signal (effect) will be routed to the FX channel, so you need to open that fader to hear the effect added.
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