How do I make a link?

This has been bugging me and now our links page is up I need to learn. I clicked source and it turned into a html tag so I copied and pasted that and it made a link with the changed web address but then i clciked soruce to turn it back into text and when I tried to alter the text it became normal text and not a link, what is the correct way to make a link as I need to start building reciprocal links!

Cheers as always.
 

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