Binary essentially has two digits (0 and 1). We can at least count to two things in a binary bit.
Well how do we count in Decimal?
0 - Start at 0
Count 1,2,3,4,5,6,7,8, and then...
9 This is the last symbol in Decimal
10 - So we start back at 0 again, but add 1 on the left
The same thing is done in binary.
What happens in Decimal?
99 - When we run out of digits, we ...
100 - start back at 0 again, but add 1 on the left
And that is what we do in binary ...
So let's write numbers 0 through 7 in binary
Decimal - Binary
0 - 000
1 - 001
2 - 010
3 - 011
4 - 100
5 - 101
6 - 110
7 - 111