Behavior-based detection refers to a method of identifying unusual or suspicious activities by analyzing patterns of behavior rather than relying solely on predefined rules. In the context of cryptocurrencies, this can involve monitoring transactions and user interactions to spot irregularities.

For example, if a user typically makes small transactions but suddenly executes a large transfer, this deviation from normal behavior could trigger an alert. This approach is particularly useful for detecting fraud, hacking attempts, or money laundering.

By focusing on behavior rather than just specific transactions, the system can adapt to new and evolving threats. It helps in recognizing previously unidentified anomalies, offering more flexibility and improved accuracy in threat detection. Overall, behavior-based detection enhances security measures by continuously learning from user activities and adjusting to emerging risks.