Why does maxing out my base make me able to defend against attackers better. Should I max out at every Town Hall and how to get the loot required to max out my base?

1 Answer

Yes, you should.

Maximizing your bases' defenses will allow you to (when you get around eventually) upgrade your Town Hall and end up not being vulnerable after the upgrade.

It also means you'll have to upgrade less to be on par with the other plays within the same Town Hall level.

Remember, although upgrading your Town Hall opens out more expansion capabilities; buildings, it also increases your loot multiplier, meaning more stuff can be taken from lower-downs, along with more incentive from the higher-ups to attack you, since your Town Hall difference has essentially decreased.

... How to get the loot required to max out my base?

Just farm bases while minimizing your loot loss.
It's as simple as that.