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Originally Posted by smarino
Never, ever store your passwords on a computer or on someone else's server! Doing what you are doing w/ them on a piece of paper is the smartest way.
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Password managers like Keepass use encryption that alphabet agencies would find extremely difficult if not impossible to penetrate. If they can break the encryption used by Keepass they certainly aren't going to be advertising it or using it to obtain your passwords. The issue with the piece of paper is if someone breaks into your house.
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I know of no website that won't allow you to get a new password and user name if you forget or lose yours anyway, so it's no big deal if that happens.
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Your passwords are already being stored on internet server, yes? The reason this is safe is because they are encrypted on the sites server with the password itself being the key. One caveat here, if the server is compromised it could be obtained by third party. They would only need to alter the script and have it send submitted passwords. It could also be compromised without https if it's intercepted in transit since it's just plain text.
This is not an issue with something like Keepass because the file is encrypted locally. It can even be uploaded using non secure methods.