Do you know how to cloak link?

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I have found several articles saying that it is good to cloak your link to boost your earning. I dont know actually how to cloak and I have a very little knowladge about this things. Is anybody there who can help me to learn cloaking links? I found some software but I dont want to download them on my machine whithout any known recommendation. I want to know any other way how I can do it. I think there are people out there who knows it well. So will you please let me know the procedure? Or refer somewhere?