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A Dusting Attack is a type of malicious activity in the cryptocurrency world where attackers send very small amounts of coins (called “dust”) to users' wallets in order to track their activity and compromise their privacy.

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🔍 How It Works:

1. Dust Sent to Wallet
Attackers send a tiny amount of crypto (often so small it’s barely noticeable) to a large number of wallet addresses.

2. User Moves the Dust
If the user spends or moves the dust along with other funds, it can reveal links between their different addresses.

3. Tracking Begins
Attackers use blockchain analysis tools to trace these transactions and attempt to de-anonymize the user. Their goal might be:

Identifying the person behind the wallet.

Linking multiple addresses to a single identity.

Targeting them for phishing, extortion, or other attacks.

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🛡️ How to Protect Yourself:

Don’t spend dust: Leave it untouched if you suspect it’s part of a dusting attack.

Use wallet features: Some wallets (like Trust Wallet or Wasabi Wallet) have coin control features that allow you to avoid spending specific UTXOs.

Use privacy tools: Consider using mixers or privacy-centric wallets.

Regularly update wallet software to stay protected against known exploits.