I found my hermit crab lying outside its shell, dead. so I took the body and threw it away, but later on, I found that same hermit in the same shell? is this possible? Do hermits shed its body? I dont understand...

It molted.

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Good decisions come from experience. Experience comes from bad decisions.

Yup hermits molt just like any other crustacean. I tend to leave the empty shells in the tank. I used to keep land hermits (the kind you can buy at the boardwalk) Certain crustaceans will eat their shed exoskeleton. They do this because the hard exoskeleton contains proteins that they can use to speed up the hardening process. I am not sure if the hermits we use in our tanks do this or require it. But I have seen some of my hermits clinging onto their shed exoskeleton.

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I have the mind of a 5 year old and own a fire extinquisher you cant imagine the things i do.