Typically, you want everything from your tracks to your mixes to sit somewhere around 0dBVU which is around -14dBFS. You DON'T want to take it to the red, you DON'T want to "hoard bits," you DON'T want to "make it as loud as you can" on the way in.
You certainly don't want to "go as high as you can before it distorts."
If you record (AND mix) using "normal" levels, you keep some precious headroom. If you track everything as hot as you can, you're attenuating everything during mixdown in the first place, and then you'll be here going "My mixes don't sound "pro" for some reason" next week.
Use your headroom. ABUSE your headroom. This is how it's done "downtown" - This is "how the pros do it." They do NOT use up all their headroom - Especially now that there is more headroom available in recording than ever before.
Everbody wants to use up all their headroom during the mastering stage anyway - Even if you're "self-mastering" your own tracks, do yourself a favor: If you're going to use up all your headroom, do it ONCE - Not every single chance you get.
I think a lot of people do it because they think it will make their project "louder" in the end - When in reality, most mixes that come out of the mastering phase at ridiculously loud levels came in with HOARDS of headroom. Mixes that are riding the top all the time are notoriously problematic when it comes to sheer volume in the end.