Nowadays, we need to register for almost everything, especially when it comes to online platforms or websites. The problem is that remembering passwords for each one can be a challenge. That’s why many people choose to use the same password across multiple sites, but this only increases the risk of hacking.

One of the best solutions is to use a password manager. But if you still don’t know what it is, how it works, and why you should start using one, we’ll explain everything here. Additionally, at the end, we’ll provide a selection of the best password managers.

Password Manager: The Key to Protecting Your Online Information

What Is a Password Manager?

A password manager is a digital tool that generates and auto-fills access credentials securely. These passwords are stored in a type of password vault, protected with encryption to reduce the risk of cyberattacks.

A password manager, as it is also known, can create strong and unique passwords for each account, preventing the reuse of the same passwords.

Additionally, you can manage multiple passwords with just one master key. This way, you only need to remember one password to access all stored credentials.

How Do Password Managers Work?

Most password managers work in the same way: storing your credentials in an encrypted vault protected by a password or master key.

You can add your accounts manually or let the manager generate passwords for you. Once configured, the manager will automatically save your credentials and, when logging into sites or apps, speed up the process with auto-fill.

You can also integrate it with your browser through an extension, making it easier to use in your daily freelance workflow.

Some systems offer fingerprint or facial recognition access on mobile devices. Additionally, some alert you if a credential has been compromised.

Types of Password Managers

There are numerous password managers available today, and you can even find free password managers. Of course, each has its own features and functionalities.

The most common types of password managers are:

• Local Managers. Store your credentials directly on your device without an internet connection. They are secure, but if you lose the device and don’t have a backup, access to your passwords may also be lost.

• Cloud-Based Managers. The most popular option, as they store passwords on online servers and allow synchronization between devices. Ideal for freelancers who work across multiple devices.

• Browser-Integrated Managers. Browsers like Chrome, Firefox, or Edge offer their own password managers, but they tend to be less secure than specialized solutions.

• Hardware Managers. Physical devices that securely store and auto-fill passwords. These are commonly used in environments with high security needs.

• Corporate Managers. Designed for teams and businesses, allowing password sharing among employees without exposing them directly.

For freelancers, a cloud-based password manager is often the most practical choice. The main reason is that they provide access from any device with an internet connection.

How Secure Are Password Managers?

It’s natural to wonder how trustworthy a password manager is, given that they store sensitive information.

Password managers use advanced encryption to protect data. This means that even if an attacker gains access to the database, they shouldn't be able to read the information without the decryption key. They also do not store or access your master password.

Some managers include features like personal information storage and multi-factor authentication (MFA) for added security.

However, no system is 100% invulnerable. This was the case with LastPass in 2022 when hackers accessed customer data due to security flaws.

In any case, the best approach is to use a strong master password, as it is the only barrier between your data and potential threats.

Why Should You Use a Password Manager?

Account breaches are becoming increasingly common, and if you reuse the same password across multiple sites, a single hack could compromise them all. In fact, according to research by NordPass, some passwords can be cracked in just one second.

That’s why it’s always recommended to use unique and secure passwords, combining letters, numbers, and symbols to prevent hacking.

But what if you manage dozens of accounts? How can you remember all your saved passwords? It’s nearly impossible with so many complex passwords.

This is where a password manager becomes useful: it generates secure passwords, stores them, and auto-fills them for you. Additionally, these passwords are usually random, and the only thing you need to remember is the unique key that grants you access to the rest.

Password Managers: Advantages and Disadvantages

As well as making a work schedule, a password manager helps improve your productivity. Especially if you have multiple accounts on payment platforms, client sites, and work tools. However, they also have some downsides.

Let’s discuss the main pros and cons:

Beyond security, these managers can streamline your workflow, but you should also consider the downsides.

How to Choose a Password Manager?

Choosing a password manager is like shopping online securely. You need to research the different options on the market and evaluate certain aspects.

In this case, consider what each offers:

• High-level security and encryption (such as AES-256) to protect your information. It’s also advisable to enable two-factor authentication (2FA).

• Compatibility with your daily work tools, such as devices, browsers, or any service you use as a freelancer.

• Ease of use to quickly manage your credentials without affecting productivity.

• Cost, as there are free managers with basic features and paid versions with more functionalities.

Additional features, including data breach alerts, secure notes storage, or document protection.

Top 5 Password Managers

Here are five common password managers:

1. LastPass

LastPass is a cloud manager and, despite the 2022 flaw, uses AES-256 encryption. It also allows you to share passwords with others without them being able to see them directly.

2. NordPass

The NordPass app was developed by the creators of NordVPN and is compatible with multiple devices and platforms. It offers state-of-the-art encryption, cloud storage and an offline option. 

3. 1Password

This software features high-level encryption and synchronization across multiple devices. 1Password offers two-factor authentication, shared access for computers, and allows you to save notes and credit cards.

4. Bitwarden 

Bitwarden is a highly secure open source manager with free multi-device synchronization options. Available for web, desktop and mobile applications.

5. Dashlane

Apart from the obvious, Dashlane analyzes your passwords and alerts you about weak or reused passwords. It also has a VPN integrated into its premium plan, offering an additional layer of privacy when browsing.

Another common option is Google Password Manager, a free password manager integrated into Chrome that syncs with your Google account. However, its security level is lower than the specialized alternatives.

We can also add Microsoft password manager as an additional one. This stores credentials in encrypted form and allows autocomplete on Windows, iOS and Android devices. Available in Microsoft Edge and synchronized with Microsoft accounts.

These managers guarantee protection and organization if you manage multiple accounts and projects. 

DolarApp: An Alternative for International Payments

Do you work with international clients?

Try DolarApp if you live in Colombia, Mexico, or Argentina and receive payments in dollars.

We are a fintech company designed to manage digital dollars from home. With our app, you can receive international payments securely and effortlessly.

Additionally, we offer a fair exchange rate to convert those earnings into pesos instantly whenever you need. You can also use the USDc account to send money to the United States.

With us, you only win.