The best way to store passwords securely

2025, Jul 18

How to Secure Your Passwords: Comparing Methods
Passwords have been used by humans for a long time as a basic security measure. However, while they are useful, they are not a perfect solution. The best way to manage your passwords depends on your habits, your level of tech savvy, and the number of accounts you own.
In general, using a password manager is still the best option in terms of both security and convenience. However, many people still choose to save their passwords on paper, in a browser, or simply… in their heads. Here is an analysis of the pros and cons of each method.
A Dedicated Password Manager

 

This is a solution for securely storing login information in an encrypted database, allowing you to create and use strong, unique passwords for each account without having to remember them all. You only need to remember one master password. In addition, many applications also come with random password generation, autofill, weak or duplicate password warnings.
For example, VPN RICE Keys provides all of these features, while securely storing credit card information, personal notes, and even two-factor authentication (2FA) codes. What's more, it's included for free in the VPN RICE application, and continues to work even if you stop your VPN subscription.
Password manager in browser
Browsers such as Chrome, Firefox, and Safari now all have built-in password saving tools. This method is quite convenient, but the level of security is often lower than that of a dedicated application.
This is because browsers often use poorer encryption, lack robust cross-platform syncing, and only store basic information like passwords, credit cards, and addresses. Additionally, many browsers do not require a master password for access, making them vulnerable to exploitation if someone gains access to your device.

Write it down on paper or in a notebook
Storing your passwords in a paper or notebook is sometimes appropriate if you only have a few accounts and rarely change them. However, this method is risky: the notebook can be stolen, lost, damaged, or viewed by others.

In addition, if you write down multiple versions of a password, it is easy to get confused about which version is the most recent. If you choose this method, make sure the notebook is kept securely, preferably in a locked drawer or safe, and not carried when traveling.

Remembering Passwords
Relying entirely on memory to manage your passwords can be quite secure, but it’s not practical for most people — especially when you’re managing dozens or even hundreds of accounts like today. Secure passwords are typically long, random strings that are hard to guess but also incredibly hard to remember. This makes it easy to “compromise” by reusing passwords or making them too simple, significantly weakening your account protection.

If you still want to remember them yourself, consider using a passphrase — a collection of random, easy-to-understand words that are still strong.

Comparing Offline and Online Password Storage
When it comes to storing your passwords, you can choose between offline and online methods. The table below makes it easy to weigh the pros and cons of each:

Criteria
Offline Storage
Online Storage
Examples
Paper, notebook, encrypted USB, local app
Cloud password manager (e.g. RICE Keys VPN)
Accessibility
Limited to physical device
Synchronization, accessible across multiple devices
Protection level
Immune to cyberattacks, but vulnerable to loss or theft
Secure encryption, but product dependent
Convenience
Manual operation, no autofill
Supports autofill, quick creation and update
Backup & restore
No automatic backup, vulnerable to data loss
Cloud backup and restore possible
Who is it for?
Privacy-first, few accounts
Suitable for most users, both secure and convenient

Best practices for creating strong passwords and protecting accounts
No matter how you choose to store your passwords, a strong password is the first line of defense against threats. Here are some security tips to help you create passwords that are both secure and manageable.

Create long, random, and unique passwords
A strong password should be long and difficult to guess. Aim for a minimum of 12 characters, with a mix of uppercase and lowercase letters, numbers, and special characters. Avoid personal information like names, birthdates, or common phrases like “123456,” “password,” or “qwerty” — these are the first choices hackers will try when trying to break into your account.

It’s best to create a completely random and unique string for each account to minimize risk.

Use a memorable, yet secure passphrase
A useful alternative is a passphrase — a series of unrelated random words. This is easier to remember than a complex string of characters, but it can still be difficult for bad guys to guess, especially if you add a few symbols or numbers in between.
Passphrases are more secure than simple passwords
Passphrases are typically longer and provide a higher level of security than short, simple passwords. If you’re not sure where to start, check out our passphrase examples for ideas.

Avoid reusing passwords across multiple accounts
Reusing the same password across multiple accounts is a big risk. If one account is compromised, an attacker can easily try the same password on other services — a tactic known as credential stuffing. Even if your password is leaked in a data breach, other accounts that use the same password are at risk.

So make sure that each account has a unique password, especially important ones like email, banking, or work. Never use the same password for both personal and work accounts, as a single mistake can impact your entire organization.

If you reuse passwords, prioritize changing the passwords for important accounts like Google — which are linked to many other services. To make it easier to manage in the future, consider using a password manager that stores and alerts you when it detects that you are reusing passwords, such as VPN RICE Keys.

Enable Two-Factor Authentication (2FA)
Two-factor authentication increases security by requiring an additional verification step when logging in. This is typically a verification code, an authenticator app, or a USB device. Even if a hacker gets your password, they still can't log in without this second step. Turn on 2FA whenever possible, especially for important accounts.

Monitor for Security Breaches
Use a tool like VPN RICE Keys to monitor for breaches involving personal data, such as your password, email, or credit card number. This helps you promptly change your password or take necessary precautions.

Securely manage group passwords for your business
In a team environment, password management can't be based on spreadsheets or emails alone. A professional, secure system helps minimize risk and quickly fix security vulnerabilities.
Centralized Team Repository
An enterprise password manager provides a shared, encrypted repository that allows team members to securely store and access credentials. This eliminates the need to share passwords via email or a separate file, making collaboration easier and more secure.
Role-Based Permissions
When working with multiple people, clearly define who needs what access, then set up role-based permissions. This ensures that each team member only sees and uses the information they need to do their job. For example, the support team only needs access to the customer service system, while HR information remains private. This approach minimizes risk and protects sensitive data.
Admin Monitoring Features
When choosing a password manager for your business, prioritize solutions that include admin monitoring and controls, such as activity logs, access request approvals, and regular password updates. These tools help administrators track employee security habits, identify potential risks, and ensure that everyone adheres to strict security policies. They play a vital role in maintaining accountability and improving overall security.

Common Methods Cybercriminals Use to Steal Passwords
Hackers have a variety of tricks and tools to steal passwords. Some exploit password weaknesses, while others trick you into revealing your login credentials. Here are two typical techniques:
Brute-Force Attacks
This is a common method in which hackers use automated software to try a series of character combinations to find the right password. A more sophisticated version of this attack involves cracking password hashes — the encrypted data that websites store. If a bad actor steals the hash, they can continue cracking it offline.
To reduce the risk, many platforms now salt the hashing process, making it harder to decrypt. Still, you should protect yourself by using long, complex passwords, as short or simple passwords are more vulnerable.

Password spraying
Unlike brute-forcing, which focuses on one account, this method tries common passwords like “Password123” or “Welcome1” on multiple accounts at once. This approach helps hackers avoid being locked out of accounts due to repeated incorrect guesses, and increases their chances of success because many people still use easy-to-guess passwords.
Phishing techniques
Phishing is a technique used by hackers to trick you into revealing your password, usually through a fake email or text message that contains a link. For example, you might receive an email that appears to be from your bank, asking you to log in, but the link takes you to a fake website that collects your login information.
To avoid this, always enable two-factor authentication (2FA). If you enter your password but don't see a second authentication step, that could be a red flag.

Credential stuffing
In this type of attack, hackers use a username and password that has been leaked from one service to try logging in on other services. If you reuse passwords, they can easily break into multiple accounts — from email to social media to bank accounts.

Keylogger
A keylogger is spyware that records every keystroke on your device. It requires a hacker to install a keylogger on your device, often via an email attachment, pirated software, or a malicious website.

To protect yourself, use a password manager with autofill — so you don’t have to retype your password, which can be recorded. Also, install reputable antivirus software to detect and block keyloggers.

Local discovery
This is how hackers exploit physical access to your device or space to steal your password. For example, someone might open a computer that’s already logged in to see a password saved in their browser, or find a piece of paper with an unprotected password on it.

To reduce your risk, always lock your device screen, enable strong authentication, don’t store passwords in unsecured locations, and regularly check who has access to shared devices.

The Worst Ways to Store Passwords
Some password storage habits leave you vulnerable to attack. Here are some things to avoid:
Storing in an unencrypted text file
Writing a list of passwords in a Notepad, spreadsheet, or screenshot may seem convenient, but it is extremely dangerous. These files can be easily accessed, copied, or lost if your device is stolen.
Storing in an email or note-taking app
Similarly, storing passwords in an unsecured inbox or notepad is also risky. If your device is unlocked, someone else can see all of your passwords.

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