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Password Managers: A Complete Guide to Choosing and Using Them

Password Managers: A Complete Guide to Choosing and Using Them

Redazione RHC : 15 November 2025 15:28

Passwords: how important are they in our digital lives?
How many times have we reported this on our pages?

Most digital activities— from social media to banking to online shopping —require unique and strong credentials. However, maintaining an effective and secure password management system is a challenge for many people.

A common but risky practice is to use the same password for multiple accounts (password reuse) or to resort to simple, easily memorable combinations. Unfortunately, these methods exponentially increase the risk of data theft: once an account is compromised, a hacker can access a variety of related services, causing significant personal and financial damage.

In this article, we’ll delve into what a password manager is, how it works, and the best tools available for secure password management. We’ll also explore best practices for using it effectively and maximizing your digital identity protection.

What is a Password Manager and How Does It Work?

A password manager is a tool designed to help users generate, store, and manage their passwords in a secure and centralized way. Essentially, it’s a ” digital vault ” where all login credentials are stored in one place and protected by a master password. This system allows for strong, unique passwords for each service used, thus reducing the risk of cyber attacks due to weak or duplicated passwords.

Modern password managers offer advanced features, including:

  • Automatic generation of strong passwords : The software creates complex and secure passwords, avoiding weak or easily guessed ones;
  • Autocomplete : Allows login fields to be automatically filled in, speeding up login and reducing the risk of errors;
  • Storing notes and sensitive data : Some managers offer secure spaces to save sensitive data such as credit card numbers, documents and private notes;
  • Password Strength Audit : With audit features that alert you to duplicate or weak passwords.

Password encryption and secure storage mechanisms

The security of a password manager relies primarily on sophisticated encryption systems . Stored passwords are encrypted using advanced encryption algorithms, such as the 256-bit AES (Advanced Encryption Standard) , which makes the data unreadable to anyone who doesn’t have the master password.

These tools implement end-to-end encryption mechanisms, where data is encrypted on the user’s device and remains protected during transfer and storage . This way, not even the service provider has access to the user’s passwords. Additionally, many password managers offer two-factor authentication (2FA), adding an extra layer of security for accessing your account.

Differences between local and cloud password managers

There are two main types of password managers, which differ based on how they store data:

  • Local password managers : These software save encrypted data directly on the user’s device, such as a computer or mobile phone. The advantages of this solution include greater privacy and complete control over your data, as it is not transmitted to external servers. However, if the device is lost or suffers a hardware failure, it may be difficult to recover the information.
  • Cloud-based password manager : In this case, passwords are stored on the service provider’s secure servers and synchronized across the user’s devices. This type of password manager offers greater flexibility and convenience, allowing users to access their passwords from anywhere. However, since they are based on external servers, their security also depends on the provider’s security policies.

Both solutions have their advantages and disadvantages, but the choice between a local or cloud password manager depends on the user’s security, accessibility, and privacy needs.

Benefits of Using a Password Manager

One of the main benefits of a password manager is the significant increase in security for your credentials. Using complex, unique passwords for each account is essential for protecting personal data, but it’s often difficult to manage manually. A password manager solves this problem by generating and storing strong, unique passwords for each service, ensuring that if one account is compromised, others remain protected.

Furthermore, thanks to advanced encryption, password managers protect data from unauthorized access. Most solutions use encryption algorithms such as AES-256 to encrypt passwords, ensuring that data is accessible only to those with the master password. This configuration significantly reduces the risk of theft or unauthorized access, making personal information protection one of these tools’ strengths.

Convenience and time saving: automatic login and password generation

Another notable benefit of a password manager is convenience. These tools simplify access to online accounts thanks to the autocomplete feature, which allows you to automatically fill in your login credentials without having to type them each time. This not only speeds up access to services, but also eliminates the risk of typing errors.

A password manager can also automatically generate complex passwords, offering secure and difficult-to-guess combinations. This way, users don’t have to worry about manually creating complex passwords, saving time and reducing the risk of choosing weak combinations.

Reduce the risk of phishing and brute force attacks

Password managers can also help prevent phishing attacks and brute-force login attempts. In the case of phishing, a password manager won’t automatically fill in your credentials on a site that doesn’t exactly match the registered URL. This helps identify fake sites and reduces the likelihood of entering your credentials on fraudulent pages.

Regarding brute force attacks, password managers support the use of long, complex passwords, making it very difficult for a hacker to guess the combination through repeated attempts. Combining these benefits with optional two-factor authentication, password managers provide comprehensive protection against many of the most common cyber threats, thus improving the overall security of personal and business information.

How to Choose the Best Password Manager: Evaluation Criteria

Security is the primary consideration when choosing a password manager, as the goal is to protect your credentials and sensitive data. A good password manager uses advanced encryption algorithms, such as AES-256, to ensure that stored passwords are inaccessible to third parties. It’s important that the service adopts end-to-end encryption, so that passwords are encrypted directly on the user’s device and remain unreadable even by service providers.

Multi-factor authentication (2FA) is an additional security feature: with this feature, accessing your account requires a second verification factor in addition to your master password. 2FA methods can include SMS, email, authenticator apps, or hardware devices, making unauthorized access more difficult. Some password managers also support biometrics, such as fingerprint or facial recognition, for an even more advanced level of security.

Compatibility with devices and operating systems

A password manager must be compatible with all the devices and operating systems used by the user. Some password managers are limited to a single operating system, while others offer a full range of apps and browser extensions, including Windows, macOS, Android, iOS, and major web browsing platforms.

Syncing between devices is essential to always have access to your credentials wherever you are. It’s important to choose a password manager that allows for fast and secure synchronization, so you can keep your passwords up-to-date on every device. Additionally, many solutions offer browser extensions, allowing direct access from the browser and making it more convenient to use without having to leave the app or website.

Secure sharing, secure notes management, backup

Advanced features are another differentiator among password managers. Some tools include secure password sharing features, ideal for those who need to share login credentials with colleagues or family members without compromising security. With this feature, users can define who can access specific passwords and with what permissions, maintaining control over their sensitive data.

Secure notes management is another useful feature for storing sensitive information that isn’t necessarily passwords, such as credit card numbers, IDs, and PINs. Secure notes are protected by the same encryption as passwords and can be organized in a simple and accessible way.

Finally, data backup is an essential feature. Having an automatic backup system ensures that all your credentials are recoverable even if you lose your device or experience technical issues. Some password managers offer cloud backup or the ability to export credentials to encrypted files, making it easy to restore your data and ensuring secure access at all times.

Choosing the right password manager means finding a balance between security, compatibility, and advanced features, evaluating your specific needs to ensure maximum protection and convenience.

The Best Password Managers of 2024: Comparison of Solutions

The password manager market offers a wide range of options, both free and paid, each with different features, security levels, and advanced functionality. Free password managers are suitable for those who need basic functions, such as password storage and autocomplete, while paid versions include advanced options such as secure password sharing, advanced multi-factor authentication, and multi-device support. Choosing between a free or paid solution depends primarily on your personal or business needs and the level of protection you desire.

Feature Comparison

  1. LastPass
    • Key Features : LastPass offers a robust free version with autocomplete, secure password generation, and syncing across mobile or desktop devices (but not both in the free version). The premium version also includes multi-factor authentication and secure login sharing.
    • Security : AES-256 encryption and biometric authentication for data protection.
    • Strengths : Intuitive interface, good sharing and password recovery options.
    • Limitations : Syncing is limited in the free version and has suffered some security vulnerabilities in the past.
  2. 1Password
    • Key Features : 1Password is known for its advanced security features and multi-device compatibility. It includes the Watchtower feature, which flags weak or compromised passwords, and allows you to create separate vaults for different data categories.
    • Security : AES-256 encryption, biometric authentication, and hardware security key option.
    • Strengths : Excellent security, advanced password and note management, top-notch customer support.
    • Limitations : Relatively high cost and no free version (only offers a free trial).
  3. Dashlane
    • Key Features : Dashlane offers a complete solution with password generation, syncing, dark web monitoring, and a built-in VPN in the premium version.
    • Security : AES-256 encryption and dark web monitoring to alert users if data is compromised.
    • Strengths : Great for those who want an all-in-one solution with VPN and advanced monitoring.
    • Limitations : Higher costs for the premium version and lack of advanced features in the free version.
  4. Bitwarden
    • Key Features : Bitwarden is an open-source option with a robust free version that supports cross-device syncing, autocomplete, and secure password generation. The paid version adds advanced multi-factor authentication and other premium features.
    • Security : AES-256 encryption, open-source approach that allows for community-based security auditing.
    • Strengths : transparency, excellent value for money, and a complete free version.
    • Limitations : Less intuitive interface than competitors and some advanced features limited to the premium version.
  5. NordPass
    • Key Features : Developed by the team behind NordVPN, NordPass offers advanced encryption, autocomplete, and secure password sharing. The premium version includes multi-device support and real-time syncing.
    • Security : End-to-end encryption with XChaCha20 encryption system, known for high security.
    • Strengths : Advanced security, modern interface, and support for multiple devices.
    • Limitations : Some advanced features are only available in the paid version, and fewer customization options than other solutions.

Choosing the right password manager depends on several factors, including your budget, the complexity of the features you need, and your personal preferences for security and usability.

Tips for Safe and Conscious Use of Password Managers

The master password is the main access key to all the credentials stored in the password manager; therefore, protecting it is essential . Here are some practices to avoid losing it:

  • Create a strong yet memorable password : Choose a combination of words that have meaning only to you, including capital letters, numbers, and symbols to increase its security without making it impossible to remember.
  • Don’t write down your master password in unsecured locations : If you need a reminder, avoid writing it down on unprotected devices or paper. Instead, consider using more secure methods, such as a mnemonic code or a secure physical location like a safe.
  • Enable recovery options (if available) : Some password managers offer master password recovery options, such as security questions or recovery keys. Be sure to set these up, if your manager supports them, to increase the chances of recovery if you lose your password.

Enable two-factor authentication (2FA)

Two-factor authentication (2FA) adds an extra layer of security to your password manager by requiring a second sign-in requirement in addition to your master password. Here’s how to enable it:

  1. Check if your password manager supports 2FA : Most modern solutions include 2FA. If you don’t see it in your security settings, consider upgrading to a version that does.
  2. Choose the most secure 2FA method : Some password managers offer the option of SMS, authenticator apps, or hardware tokens. Authentication apps like Google Authenticator or Authy are generally more secure than SMS, which can be intercepted through vulnerabilities in core network signaling protocols, such as SS7.
  3. Activate and connect your device : Once you’ve chosen your method, go to your password manager’s settings and set up 2FA. Follow the instructions to connect your authentication device and save the backup code provided for emergencies.

Enabling 2FA helps protect your account even if someone discovers your master password, significantly reducing the risk of unauthorized access.

Manage and update passwords regularly

Regularly updating passwords is essential to maintaining a high level of security, especially for more sensitive accounts. Here are some effective practices:

  • Establish an update schedule : Set quarterly or semi-annual reminders to update passwords for important accounts. Some password managers allow you to automate this process, with alerts for old or compromised passwords.
  • Use the strong password generation feature : When you update a password, take advantage of the password manager’s password generation feature to create unique, strong passwords that are difficult to guess and cannot be reused.
  • Delete old, unneeded passwords : If you stop using a service or account, consider deleting the service accounts and associated passwords from your password manager. This will help keep your database clean and reduce the risk of breaches from abandoned accounts.

By following these tips, you can use your password manager safely and consciously, protecting your credentials and making password management easier in the long run.

Conclusion: Password Security in the Future

Encryption technologies are improving, while artificial intelligence and machine learning are helping to identify and prevent suspicious behavior and threats in real time. In addition to traditional password managers, advanced methods such as passwordless authentication and biometric solutions are gaining ground, further reducing reliance on passwords and improving overall security. However, password managers remain an essential tool, especially during this transition, and provide a fundamental level of protection for secure account access.

Adopting a password manager is therefore one of the most effective solutions for protecting your personal and business information. A password manager not only facilitates password management, but also ensures regular password rotation and maintains high security standards, limiting the risks associated with weak or reused passwords. For companies, adopting a password manager is now a necessary measure to protect sensitive corporate data, limit unauthorized access, and improve internal security.

Protecting credentials can’t rely solely on a single tool, no matter how advanced: it must be accompanied by thoughtful management of security practices . Using a password manager, combined with measures like two-factor authentication , is a solid strategy for protecting digital identity. Adopting these best practices at both the individual and corporate levels is essential to effectively addressing cybersecurity challenges in the future.

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The editorial team of Red Hot Cyber consists of a group of individuals and anonymous sources who actively collaborate to provide early information and news on cybersecurity and computing in general.

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