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To sign Word and PDF documents online, there are three main ways to create electronic signatures. The first method involves manually scanning your signature: sign a piece of paper, preferably using a blue gel pen or black marker for better visibility, then scan it at a high resolution. After scanning, remove any background using photo editing software like Photoshop. This traditional method remains popular despite its simplicity. Other methods include using online signature tools or apps; however, the video focuses primarily on the manual scanning technique. Each method allows for the convenient signing of electronic documents in various formats.