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Twitter Hashtags can be useful to help follow your updates for example if you are twittering about a specific event like on a conference or twittering about an evolving news story. They can also be used to group postings from several persons on a common subject. To post updates on software/services updates and so on.
To create a hashtag simply put the # character before a word describing your update. Before posting hashtags though you need to follow @hashtags on twitter to get your tags indexed (follow people and enter hashtags, it’s the user with more than 60k followers, you will get an immediate follow).