A password manager is an app that creates, stores and fills in passwords for you. Instead of remembering dozens of passwords, you only need to remember one master password, which opens the manager. The Icelandic police advise using a different password for every account, and a password manager makes that easy.
Why does it matter?
Data leaks from company systems all the time. Criminals buy stolen email addresses and passwords and try them on other services, such as email, online banking and crypto exchanges. If you use the same password in many places, one leak opens many doors. With a password manager, every password is long, random and used in only one place.
A password manager also protects you against PhishingPhishingA scam where criminals pretend to be a trusted company or authority to get you to hand over passwords, card details or your seed phrase., because it only fills in a password on the right web address. If it doesn't offer to fill in on a site you use often, that can be a sign the site is fake.
What kinds are there?
- Built-in password managers come with iPhones, Android phones and the main web browsers. They are free and sync across your devices.
- Dedicated apps, such as Bitwarden or 1Password, work across all devices and operating systems.
Many password managers also store passkeysPasskeyA way to log in without a password, where your phone or computer confirms it's you. Passkeys don't work on fake sites, so they protect against phishing., which are replacing passwords on more and more services.
Good to know
- The master password is everything. Make it long, use it nowhere else, and turn on two-factor authenticationTwo-factor authentication (2FA)A login that needs two different proofs of who you are, such as a password and a code from an app, so a stolen password isn't enough. for the manager itself.
- Seed phrases don't belong there. A seed phraseSeed phraseA list of 12 or 24 words that backs up every key in your wallet, so whoever has the words can restore the wallet and take the crypto. gives direct access to crypto and can't be reset like a password. The safest place for it is offline, on paper or a metal plate kept somewhere secure.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 2 November 2026.