How to use alt tags to improve SEO?

Do "Alt tags" still help improving seo? There is no doubt that anchor links or text links should be used instead if image links but sometimes we have to use image links despite the fast they are not helping seo however many seo Experts say that by using "Alt Tag" you get the same result from an image link than for a text link it it really true?

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HTML Alt attribute is used to describe an image in other words it acts as a web page title and it has a few benefits maybe not directly helping SEO but in some ways it may actuality help it like for instance you can get free traffic from Google images by using alt tag!

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So it's not like anchor link text?

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