Guess it's more of a personal preference. My layer editing approach is always try to edit going up the timeline. Like stairs going up. The reason is that when in 2D animation, or Video Vfx, Ae's Layers Render order is from the ground up. The bottom layer is containing some BG, on top of another layer with some element, on top of it another. so it only makes sense you edit your way up. splitting layers above supports this type of workflow. also if you edit this way, the top layer will always obscure the bottom. when you have 2 edit points back to back, it's easy to accidentally have a trim mistake one or two frames overlapping. the up most layer will be where you edit starts, and obscure the bottom even if it extends the cut and it's easier to see where the cut is.
Thanks for your answer.
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You usually build a composite from the bottom up. Splitting layers for me usually means that I am adding something to the composite so putting the new layer above the original makes perfect sense. Most of the time when I split a layer I will do something different to that layer and then extend the layer below to build a composite. It would be a very odd thing for me to have a sea of layers below a master layer because it would only add to the monkeying around if I wanted to build some layers using the original footage.
I would caution you about making your comps too long. 90% of mine are one shot and under 7 seconds. Trying to edit in AE, especially an animated movie, is a painful and inefficient endeavor. You'll have more success creating shots and short sequences in AE and then polishing and finishing your movie in a NLE like Premiere Pro. You won't save any time in projects longer than a couple of minutes if you render and then edit in Premiere.
Thank you very much Sir.