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Anchor texts are descriptions of links. They let Google know what this link is about. In most cases, URLs are naked. That is why your backlink profile should look that way to appear natural. Next most popular are branded anchors. Keyword based anchors are less natural and therefore should be used conservatively. However, they are powerful in letting Google know what your site is about. You should have a website that is clearly optimized for your keywords in order to help Google further make that connection. This is just very general information and there's more to it.
 
This is what they call contextual links

Generally, they are the most valued types of links. They let you set authority for your site with more precision

But soon this will be completely irrelevant, since Google has been working on AI reputation analysis for a couple of years, so now, Google can detect context by reading the whole page where your link is placed.

In 1-2 years MAX, a contextual link will be as useful as a branded or naked link (if not already)
 
The anchor text is also known as the link label or link title. The words contained in the anchor text help determine the ranking that the page will receive by search engines such as Google.
 
The anchor text is also known as the link label or link title. The words contained in the anchor text help determine the ranking that the page will receive by search engines such as Google or Yahoo and Bing.
 
Generally, anchor text can enhance the user experience and when you use relevant, descriptive anchor text can improve your website’s rankings on Google.
 
The anchor text is also known as the link label or link title. The words contained in the anchor text help determine the ranking that the page will receive by search engines such as Google or Yahoo and Bing.
SEO
 
Anchor texts the the keywords targeted to your site into an contextual backlink anchored !
 
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