There are basically three types of links first one do-follow second one is no follow and the third one sponsored link. Different links play a different role in SEO.

Do-Follow link: When you are giving a do-follow link to any website then you are giving a signal to google crawler that pass a link juice or authority to that site. 

Benefits of a Do-Follow Link 

when your site associated with a prestigious and popular site then it got some amount of positive signal from google. From an organic point of view, do-follow links are better to generate, or do follow the link allows both the search engine and the user to reach the site it points to.

A dofollow link has HTML code that looks like this:

<a href=“https://monitorbacklinks.com/”>Monitor Backlinks</a>

No, Follow link: when we apply no follow to any link it means we don't want that crawler to pass  authority of our site to another site. Or No follow links allow only the user to follow the link and not the search engine.It does not passes the link juice and page rank.

Benefits of No-follow 

As we know Nofollow links don’t pass any link juice but it can help to get traffic on your website.

A dofollow link has HTML code that looks like this:

<a rel=”nofollow href=”https://seranking.com/”>SE Ranking</a>