What is the difference between digital signals and analogue signals?

A Signal that can take any value between the two extremes of high and low is an Analogue signal. E.g. Any alternating current or voltage signal in a Digital system the signal is not allowed to have a value(s) beyond the predefined.

Normally there are only two values allowed. They could be any arbitrary values as per the system but normally chacterised as 0 and 1. Forming a what is called the binary system.

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