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A safelist is a mailing list that is geared towards advertising web sites, business opportunities, and so forth. All members of a free or paid safelist agree to receive advertising emails from the other members. It benefits you by allowing you to advertise to a number of people via email, without having to resort to spam.
Traffic exchanges are online services where members of the site can view each other’s offers or websites. It’s Like – “You view my offer, and I’ll view yours”. Hence the name traffic “exchange”. Members exchange site views with other members. TE’s are actually a very inexpensive form of advertising and can definitely produce huge results when used properly.