SEO FAQ - Search Engine optimization

Search engines dont penalize a site based on link exchanges alone, link exchange itself is nothing wrong, reciprocal linking has been around long before the origin of pagerank a google's technology based on links, and it often makes sense organically,

links are the building block of the web,

though search engines dont penalize sites which exchanges links with legitimate sites they are known to frown upon sites using link exchange softwares, link exchange softwares highly disturbing to website owners and webmasters,

Also if we link to bad neighbourhoods too much there might be some sort of hidden filter that will play on the site and possible penalize them, So it is save to say link exchanges are not bad but doing them in too much aggressive way does cause some problems.