I have a small portable compressor. It gets drained after every use, and the drain cock is left open. Not sure if that's a good practice or not.
Doesn't really matter. While, yes, you don't want the inside of your pressure vessel rusting away, in practice those tanks take quite a bit to rust through. What you are actually trying to avoid by draining the tank is running water through your lines, air tools, or oiler. That will *expletive deleted*ck *expletive deleted*it up right quick. And the water (in the tank anyway) comes from the cooling of the hot compressed air as it expands into the tank or goes through the air cooler (if equipped). That's why my first answer mentioned location. My compressors suck in hot muggy air, heat it more, then suddenly drop the temp quite a bit. I'd wouldn't be surprised if I had full on thunderstorms in that tank. Ben may well get much less water, just because he has much less water per cu ft of air.
Because it's the act of heating and cooling the air while the compressor runs that actually causes the condensation, you are better off with quick drains frequently during operation, then just draining it at the beginning/end of the day. For all practical purposes your compressor isn't getting more water in it sitting at one pressure, either 0 or 125 psig. It's the cycling that does it. I'm horrible about remembering to drain my tank (hence the planned auto drain), but I also run all my air through a big honking air dryer right after the tank, which helps a lot. Ideally you'd run it through a cooler/dryer between the compressor and the receiver*, but that would make for an expensive system. For smaller homeowner portable compressors, you are fine just leaving it open for storage, running it for a minute or two to blow out any dust/insects/stuff, then closing it and doing your thing. On my small nail gun compressor, I crack the petcock and drain water every time I load more nails in the gun. That seems to be a pretty decent compromise of time spent vs water in the air. For "shop air" that you might use off and on for a full day, or several days of projects, a more involved dryer/drain plan might be warranted.
*In point of fact that's exactly what ships that used compressed air for controls and engine starting do. several compressors running in parallels, then the air comes together and goes through a cooler/dryer, then into receivers. The main line out of the receivers will usually have the regulator and oiler.