Analog signals are continuous waveforms, representing data through variations in amplitude or frequency. In contrast, digital signals consist of discrete values, often represented as binary code (0s and 1s). Analog systems can suffer from signal degradation over distance, while digital signals maintain integrity even over long distances. Digital signals allow for more efficient processing and storage, making them ideal for modern communication systems and multimedia applications. Ultimately, the choice between analog and digital depends on the specific needs of a given application.