Why Link Exchange is so important?

All the search engines basically determine the rankings through the links that a website and its sub-pages has. In case of link exchange quality is more important than the quantity.
By exchanging links with good and optimized websites, it helps the websites to get the top rankings for their prime keywords in search engines. Text links are the most important than the image links, because search engines can read and understand texts, but ignores images.
 Link exchange will be beneficial for both the websites that has exchanged links externally (outside own website). A single link from a related website is more important than hundreds of links from completely unrelated websites. So, quality and similar related websites links are the basic theory to determine the search engine rankings.
A complete solution on how to exchange links? in step by step method for beginners.
Use text links, avoid image links.
Anyhow, if you have used image links, then always make sure to put your keywords in the alt tags.
Put your prime keywords in text links and always insure to put a short descriptions of your website/page in minimum of 20-30 words or more if allowed.
In text links if you are not allowed to add descriptions then always try to put a short descriptions in title tag. E.g.:hover your mouse over the text Link Exchange Tips, No Tricks
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