yeah its in the wrong place, but dont worry it'll get moved.
to answer the question.. holding it like that involves specific techniques to achieve certain results. a more gentle sweeping motion, and it teaches you to relax your hand and to focus more on the movement of your wrist.
many artists do it, many dont. i cant say 'thats THE way to draw' but someone else might. i dont do it.. though i HAVE done it. i prefer another way. but thats me. and usually.. thats the best way to draw anyway.. find what works for you.. just my 2 cents. - JAG
it's only after you've lost everything, that you're free to do anything..