Ryan, it depends on your site design but you are correct.
Link Titles will appear when you hover your mouse over the link.
Alt tags are designed to display a text description for those who cannot see the image, such as visually impaired readers or crawlers. You can simply type as you would normally with spaces.
Alt tags do have a SEO significance, as do the image's file name. Both can be used to associate keywords or phrases with your web page, as well as the image search vertical.
