Website linking is a very important factor for the purpose of SEO and most of the priority lies on the actual text that makes up the link. The text that is hyperlinked while referring web resources is called anchor text. Let me elaborate the importance with two different examples.

1) To find the most beautiful watches, click here
2) To find the most beautiful diamond watches, click Diamond Watches

The last two words in both the sentences above will be hyperlinked to a specific webpage. This text is called the anchor text. This link will redirect visitors to the other website where you want the visitors to go.

Whether you do an external linking or an internal linking to any website, use the keywords in your anchor text. This is very important in terms of SEO. Having an anchor text will generate more traffic than a general word. If the Anchor Text is made up from your Keywords that link will carry a lot more weight in the eyes of Google.
Without any doubt, you should use those keywords on the anchor text relevant to the content on the actual website. This is a VERY important aspect of off-page SEO.
Whenever someone wants to link to your website, ask them to use the keyword on the anchor text that is relevant to your website content. If required, send them an email showing how the anchor text will be linked to the keyword from their website. If you are doing article submission on other websites, you have full control over the text link. That’s the reason, article submission happens to be very powerful when it comes to SEO. The ultimate link would be a ‘keyword rich‘ link from a page that contains information that is relevant to your information. You can check this wonderful video about back links and anchor text :-