DEFINITION of 'Digital Currency Exchanger - DCE'
A market maker who exchanges legal tender for electronic currency, or who exchanges one electronic currency for another. A digital currency exchanger charges a commission for this type of transaction, with transactions often occurring through websites rather than physical locations. This commission can be in the form of a fee or taking the bid/ask spread.
BREAKING DOWN 'Digital Currency Exchanger - DCE'
Unlike fiat money, which is legally sanctioned by a government, digital currencies operate as self-governed currencies. For example, digital gold currency (DGC) has its value based upon the value of gold. Investors should take heed of the risks associated with digital currency exchangers, as there has been regulatory issues with them in the past.