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Why do internal links matter?

In SEO there is a concept called "link juice" which flows through your web pages through do-follow links. Internal links help you spread that link juice throughout your website and multiple articles. On top of that, it increases the amount of time a user spends on your site if he continues clicking through to other articles. All of the above leads to higher rankings in google search.
 
So, keep in mind, this is more important for content sites and any sites you wish to be important to the SERPS.

Typically, many landers aren't interested in link juice, though there are several exceptions.
 
  • Internal links are a for the purpose of visitor retention by website navigation ease.
  • The goal is exposing users/visitors to your other/older content and increasing ad impressions and conversion opportunities.
  • Longer times on site and the number of pages viewed helps your SEO also.

From a SEO crawl perspective; *dofollow* internal links expose content to indexing robots and multiple internal links give credence to a page's importance.
 
Internal linking is important for managing the flow of PageRank through your site and to pages that need it. If you use internal links to increase the PageRank of one page, other pages get less PageRank. If you have pages that don't rank well, you can build more internal links to them.

In your setup, the categories get a lot of PageRank while each individual post doesn't get much. That's ok if your posts are still ranking well. If they are not, it might make sense to move a bit of PageRank from your categories to individual posts.

That being said, internal links are also important for users. A fundamental question for users is 'what else do they have' and 'what do I do next'. So having links to related content is generally helpful for them.
 
Internal links also connect your content and give Google an idea of the structure of your website. I
nternal linking strategy can boost your SEO!
 
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