My compressor has been outside for 40 years. I am in Alabama USA where the humidity is famously high at times. I must bleed and service the system twice per year. I know it’s time to bleed the system when I look at the first filter cup and see an inch of water. The best practice is outside in an enclosure or under a roof. They do blow up, do some major damage and kill people.
An automatic blowdown system might sense for those with high humidity. They are not too expensive.
This will not dry the air.
No but it keeps water from accumulating in the tank.
I like my tanks dry, leaving me with a fresh palate. No one wants that rusty tank aftertaste. 
swirls a glass of slightly cloudy water and takes a whiff… “ahh, iron oxide with with a subtle hint of synthetic compressor oil…”
I am thinking of a way to stop the condensation from rusting the inside of the compressor tank. On a motorcycle gas tank, I use a phosphate rinse for concrete which removes the rust, and leave the phosphate coating on the bare metal. Then a product called POR15 is used to coat the inside of the tank, sealing it and effectively eliminating any future rust. I am considering using this in my old Sears Roebuck compressor tank, which I recently had to repair with large patch in th bottom of it. This would be the only way to stop the water from rusting the tank, and to your compressor wouldn’t blow up from thin metal at the waterline.
Charlie
Or you can install an after cooler and a small refrigerated air dryer between your pump and tank (thus creating what is referred to as a dry storage receiver).
This is how I have my air compressor designed.
At a minimum, adding an after cooler alone (a fairly easy modification), will drop a significant amount of moisture from the compressed air.
Agreed, but as Hank said it does remove condensed water from the compressor tank. That seems like a good thing to me.
Through it out get a new tank. It rusted out in one spot it is getting thin/week. Dangerous.
Once I cut out the bad area, I inspected the inside of the tank, the area above was all good. I’m a welder by trade, it’s not a big deal to weld in good metal in the bottom.
Charlie
2 Likes