What is Anchor Text?
Anchor text links are word links to your website or within your website that make it clear to the reader and to Google where to go and what will be found there. The anchor text link is stored in googlebot's database and Google "linkjuice" is credited to the linked-to page. This improves your website's Search Engine Optimization.
Don’t use your URL when creating a link to your site in content to be posted on another website. Whenever possible, use a keyword or keywords you want to rank for rather than your URL as the link.
Keywords containing text links, also known as "anchor text links", from other websites to a webpage on your site are like "votes" of popularity by the other websites. These "votes" tell Google that it should consider your webpage an authority on the subject to which those keywords are related. Webpages with numerous inbound keyword-rich anchor text links, across a wide variety of websites, will generally have a better chance of ranking on page 1 of Google for searches containing the keywords used in the inbound anchor text links. This is known as "off-site SEO" or "building linkjuice".