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How to Choose the Best Password Manager in 2025

How to Choose the Best Password Manager in 2025
Hostman Team
Technical writer
Infrastructure

Although passwords are not considered the most secure method of authentication, they remain widely used for interacting with various services and applications. Today, more and more users face the need to manage dozens or even hundreds of passwords for different platforms. Storing them in notes, personal messages, or browser memory is not only inconvenient but also unsafe. To solve this problem, there are special types of password security software that not only store but also protect sensitive data, providing a secure space for your credentials.

The market offers dozens of password management tools. In this article, we’ll take a closer look at password manager software and examine their key features.

What Is a Password Manager?

A password manager is software designed for securely storing and using passwords and other confidential data.

Password managers simplify password handling by allowing users to remember just one code (commonly known as the master password) instead of multiple complex combinations. Most password managers also offer additional features, such as data breach monitoring, integration with third-party services, and support for storing other types of information like logins and payment card details.

They also minimize human error in security management. For example, they eliminate the need to invent and remember complex passwords by offering cryptographically secure auto-generated alternatives. This greatly reduces the risk of weak or reused passwords — one of the main causes of account compromise.

Key Features of Password Managers

Before diving into reviews of specific software products, it's important to outline the minimum essential features a password manager should offer:

Password Generation Service

This feature enables the creation of unique, long, and cryptographically strong passwords. A major advantage is having flexible settings to meet the requirements of various services (e.g., length, special characters, etc.).

Autofill

Automating the process of entering passwords improves user experience and streamlines interactions with the password manager. Browser, OS, and app integration allow autofill to speed up logins and reduce error rates.

Data Synchronization

Especially relevant for cross-platform password apps that run on multiple operating systems. Synchronization can be cloud-based or local. It ensures access to your private data from any supported device, anywhere. For security, encrypted data transfer channels are essential to minimize leakage risks.

Supported Security Measures

These include encryption (e.g., AES-256) and two-factor authentication (2FA). Some managers also support biometric authentication using fingerprint scanners or facial recognition.

Security Level

The most important criterion to prioritize. Ensure that the app uses modern encryption algorithms (specifically AES-256) and supports 2FA.

Regular security audits are also crucial. Many password manager developers publish the results of independent security checks, which builds trust.

Pricing

Depending on user needs, there are various pricing options. Free plans are good for basic use but may be limited (e.g., single-device access, no cloud sync). Paid plans offer expanded functionality, tech support, better security, and business features.

Open-Source Options

It’s also worth noting that free open-source solutions can offer functionality comparable to paid options.

Top Proprietary Password Managers

Now let’s review three popular proprietary password management services:

NordPass

NordPass is a password vault developed by Nord Security. It helps users keep their credentials safe with a user-friendly interface and secure storage.

Key Features

  • Secure password storage: Unlimited encrypted password storage with cloud sync for cross-device access.
  • Password generator: Automatically creates strong combinations; includes checks for length, special characters, and other criteria.
  • Autofill: Streamlines login by auto-filling credentials on websites.
  • Data breach monitoring: Scans accounts for potential compromise from hacks or data leaks.
  • Offline mode: Allows access to stored passwords even without an internet connection.

Advantages

  • Advanced encryption: Uses the XChaCha20 algorithm for data protection.
  • Cross-platform support: Available for Windows, macOS, Linux, Android, and iOS; also includes browser plugins.
  • Ease of use: Clean interface that is accessible even to non-technical users.
  • Family and business plans: Offers flexible plans for individuals, families, and organizations.

Disadvantages

  • Limited free version: The free plan only offers basic features and doesn’t include multi-device sync.
  • Cloud-only storage: No local-only storage option, which may concern users who prefer full control over their data.
  • Closed-source software: Unlike some competitors, NordPass is proprietary, which may deter open-source advocates.

Pricing Plans

  • Free: Basic functionality with no sync across devices.
  • Family: Supports up to six accounts.
  • Business: Team management features for organizations.

Pricing varies by region and subscription length, with longer terms offering better value.

1Password

1Password is one of the most popular password managers, offering secure data storage and access control. It’s designed to enhance cybersecurity and protect accounts and sensitive information online.

Key Features

  • Password storage: Secure login credential storage.
  • Password generation: Built-in tool for creating strong, security-compliant passwords.
  • Form autofill: Fast access to websites without manual data entry.
  • Personal data storage: Supports storing not just passwords but also bank cards, licenses, notes, documents, and other important files.
  • Leak monitoring: Alerts users in case of password leaks or data breaches.

Advantages

  • Robust security: Uses top-tier encryption algorithms.
  • Flexible organization: Create multiple vaults for different users or purposes.
  • Cross-platform compatibility: Works on Windows, macOS, Linux, iOS, Android, with browser integration.
  • Business solutions: Includes tools for team access control and administration.

Disadvantages

  • No permanent free plan: Only a 14-day free trial is available, after which a subscription is required.
  • Cloud-only storage: While convenient for syncing, some users prefer local-only data management.

Pricing Plans

  • Individual: $2.99/month (billed annually) with full features and cross-device sync.
  • Family: $4.99/month for up to 5 users with individual vaults.
  • Teams Starter Pack: $19.95/month for up to 10 users.

Encryption AlgorithmDashlane

Dashlane is an app for storing passwords and confidential information that provides strong protection. The program helps users simplify access to credentials and protect them from unauthorized use.

Key Features

  • Password storage: A secure vault for passwords from various websites and applications.
  • Built-in password generator: A tool for creating reliable and unique character combinations.
  • Autofill: Automatically fills in passwords, logins, financial, and other data on web pages.
  • Data breach monitoring: A monitoring system warns about potential breaches and recommends password changes.
  • Cross-device synchronization: Access your information from various devices, including PCs, smartphones, and tablets.
  • Digital wallet: Secure storage for bank cards and payment details for convenient online shopping.
  • Secure data sharing: Alerts about potential unauthorized access attempts and suggests password changes.

Advantages

  • High level of protection: Uses AES-256 encryption and Zero-Knowledge architecture, ensuring complete privacy.
  • User-friendly interface: Simple and intuitive UI suitable even for beginners.

Disadvantages

  • Subscription cost: Dashlane is among the more expensive solutions, which may be a barrier for budget-conscious users.
  • Limited functionality in the free version: The free plan offers only basic features and works on a single device.

Pricing Plans

  • Free plan: Store up to 25 passwords on one device.
  • Premium: $4.99/month. Includes credit monitoring and identity theft protection.
  • Family plan: $7.49/month (billed annually), supports up to 6 users, each with their own vault.

Comparison Table

Criteria

NordPass

1Password

Dashlane

Free version available

Yes

Yes

Yes

Autosave

Yes

Yes

Yes

Passkey support

Yes

Yes

Yes

Data breach alerts

Yes

Yes

Yes

Multi-factor authentication

Yes

Yes

Yes

Email masking

Yes

Yes

No

Password generator

Yes

Yes

Yes

Supported devices

Unlimited

Unlimited

Unlimited

Family plan

Yes (up to 6)

Yes (up to 5)

Yes (up to 10)

Encryption algorithm used

XChaCha20

AES-GCM-256

AES-256

Among proprietary password managers, we compared three programs: NordPass, 1Password, and Dashlane. All three offer similar functionality, differing mainly in the encryption algorithms they use. Each product also features a free version, allowing users to try it out and select the one that best suits their needs.

Top Open-Source Password Managers

In contrast to proprietary solutions, the market also offers open-source options. Notably, some open-source solutions can be self-hosted in your own infrastructure.

KeePass 

KeePass is a popular free password manager for Windows that ensures secure storage of passwords and credentials. It operates in offline mode, providing maximum control over stored data.

Key Features

  • Password management: Stores passwords accessible via a master password. Storage is limited only by vault size.
  • Local data storage: User data is stored locally on the device, not in the cloud.
  • Autofill: Automatically fills in data on websites and in apps.
  • Cross-platform support: Versions exist for Windows, macOS, Linux, Android, and iOS.

Advantages

  • High security: Supports multiple encryption algorithms, including AES-256, ChaCha20, and Twofish.
  • Offline mode: No cloud dependency reduces the risk of data leaks.

Disadvantages

  • Cumbersome synchronization: Requires manual configuration for cross-device syncing.

KeePassXC

KeePassXC is a free, open-source, cross-platform tool for secure password storage. It is a modern adaptation of the original KeePass, tailored for use on Windows, macOS, and Linux.

Key Features

  • Local encrypted storage: Data is stored locally and securely on the user's machine. No cloud dependency unless manually configured.
  • 2FA support: Stores 2FA codes and integrates with hardware security keys (e.g., YubiKey).
  • Autofill: Supports browser integration for auto-filling credentials.
  • Cross-platform: Available on Windows, macOS, and Linux. Mobile access through compatible apps like KeePassDX for Android.
  • Password generator: Customizable password creation tool.

Advantages

  • Ease of use: Offers a more user-friendly interface than the original KeePass.
  • Offline operation: Does not require cloud storage; all data remains local.

Disadvantages

  • No official mobile apps: KeePassXC is limited to desktop; mobile support is only via third-party apps.
  • Limited plugin options: Compared to KeePass, KeePassXC has fewer plugins available.

Bitwarden

Bitwarden is an open-source password manager popular for its reliability, simplicity, and transparency.

Key Features

  • Password storage: Stores unlimited passwords with access from anywhere. Data is encrypted using AES-256.
  • Password generator: Allows custom password generation based on length, character type, etc.
  • Autofill: Automatically fills in credentials on websites and in apps.
  • Cross-platform support: Available on Windows, macOS, Linux, Android, and iOS.
  • Two-factor authentication (2FA): Supports 2FA via apps, email, or hardware tokens (e.g., YubiKey).

Advantages

  • Open source: Public code base allows independent security audits.
  • High security: Client-side end-to-end encryption ensures privacy even from Bitwarden developers.
  • Affordable and accessible: The free tier includes many features often restricted in paid plans elsewhere.
  • Local and cloud storage options: Can be hosted in the cloud or self-hosted for full control.

Disadvantages

  • Complex setup for beginners: Self-hosting and advanced configuration may be difficult for inexperienced users.

Pricing Plans

  • Self-hosted: Users can deploy Bitwarden on their own server.
  • Premium plan: $10/year, adds breach monitoring and 1 GB of encrypted file storage.
  • Family plan: $40/year, supports up to 6 users.
  • Business plan: Starts at $3/user/month, with advanced team management features.

Padloc

Padloc is a cross-platform, open-source password management app focused on simplicity and ease of use. It allows users to store, manage, and synchronize passwords across multiple devices.

Key Features

  • Open Source: The project’s source code is available on GitHub and is distributed under the GPL-3 license.
  • Cloud Synchronization: Supports storing data on cloud servers with an option for local encryption.
  • Encryption Support: Utilizes AES-256 and Argon2 encryption algorithms.
  • Cross-Platform: Available for Windows, macOS, Linux, Android, and iOS. Browser extensions are also available.
  • Password Generator: Enables creation of strong passwords with customizable options.

Advantages

  • Ease of Use: Minimalist and beginner-friendly interface.
  • Team Collaboration Support: Allows sharing of passwords within a team.

Disadvantages

  • No Offline Mode: Fully dependent on the cloud.
  • Fewer Features Compared to Alternatives: Lacks features like 2FA support, SSH agent integration, and advanced security settings.

Pricing Plans

  • Premium: $3.49/month. Includes 2FA support, 1GB of encrypted file storage, breach report generation, and note-taking functionality with Markdown support.
  • Family Plan: $5.95/month. Includes all Premium features and allows up to 5 users.
  • Team: $3.49/month. Includes Premium features and supports up to 10 user groups with flexible management.
  • Business: $6.99/month. Includes all Team features and supports up to 50 user groups with flexible configuration.
  • Enterprise: Price upon request. Includes all Business features, unlimited user groups, and custom branding options.

Psono

Psono is a password manager geared toward self-hosting and enterprise use. It can be deployed on a private server, giving users full control over their data. Psono offers strong security, team features, and multi-factor authentication (MFA).

Key Features

  • Open Source: Source code is available on GitHub under the Apache 2.0 license.
  • Self-Hosted: Can be deployed on a private server for full data control.
  • Encryption Support: Uses AES-256, RSA, and Argon2 for encryption.

Advantages

  • High Security: Supports modern encryption standards and hardware keys.
  • Team Collaboration Support: Ideal for businesses and IT teams.

Disadvantages

  • Setup Complexity: Requires server deployment for full functionality.

Pricing Plans

  • Self-Hosted: Free option for private deployment.
  • SaaS Edition (Business): $3.50/month. Adds SAML & OIDC SSO, audit logging, and extended support on top of the free version’s features.

Comparison

Criteria

KeePass

KeePassXC

Bitwarden

Padloc

Psono

Cloud Sync

No

No

Yes

Yes

Yes

Auto-Save

Yes

Yes

Yes

Yes

Yes

Passkey Support

Yes

Yes

Yes

No

Yes

Data Breach Alerts

No

No

No

No

Yes

Multi-Factor Authentication (MFA)

Yes

Yes

Yes

Yes

Yes

Email Masking

No

No

Yes

No

No

Password Generator

Yes

Yes

Yes

Yes

Yes

Supported Devices

Single device

Single device

Unlimited

Two (free version)

Unlimited (paid)

Family Plan Available

No

No

Yes (up to 6 users)

Yes (up to 5 users)

No

Encryption Algorithm

AES-256, SHA-256, HMAC-SHA-256/512

AES256

AES-256 E2EE, salted hashing, PBKDF2 SHA-256

AES

XSalsa20 + Poly1305

Conclusion

In this article, we explored password managers and thoroughly analyzed the most popular software solutions for secure information storage—both paid and free.

Each reviewed product has its own strengths and weaknesses. A well-chosen password manager can simplify the management of personal data and protect it from unauthorized access. When selecting a solution, it’s important to consider the functionality, security level, and ease of use.

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How the Cloud Works You create a cloud server with the necessary configuration and can quickly change its parameters: increase memory, disk space, or add another server for web applications. Usually, this is accompanied by a flexible payment system—for example, in Hostman it is hourly.  The advantages are quick launch, scalability, convenient backups and snapshots. The disadvantages are that with excessive resources it is easy to overpay, and with round-the-clock high load, the cost may be higher than that of a dedicated server. How a Dedicated Server Works This is renting a physical server in a data center. The resources are entirely yours: CPU, memory, disks—without any “neighbors.”  The advantages are stable performance and a favorable price with constant heavy traffic. The disadvantages are slower scaling (waiting for an upgrade or migration), service downtime during failures may last longer, and administration of the server and organization of backups are entirely the responsibility of the client. What’s More Important for a Small Store You can launch an online store in the cloud today, in mere hours. When renting a dedicated server, allow time for its preparation: engineers need to assemble and test the configuration, especially if you ordered a custom one. Usually this takes a couple of days.  In the cloud, resources can be increased in a few clicks. On a dedicated server, the scaling process takes longer: you need to coordinate changes with engineers, wait for components, and install them in the data center. In some cases, it may require migration to a new server. Cloud offers many ready-made tools and automation. A dedicated server, as a rule, will require more manual configuration and regular involvement of an engineer. Money: if you have 20–300 orders per day and traffic “jumps,” the cloud is usually more profitable and quite suitable for solving such tasks. If orders are consistently high, 24/7, without sharp spikes, a dedicated server will be more reliable. In short: if you are just starting out, choose the cloud. When the load becomes consistently high, you can consider a dedicated server. Key Criteria When Choosing Infrastructure for an Online Store Let’s look at the key criteria to pay attention to when choosing between a cloud and a dedicated server. Speed of launch It is important for a business to launch in hours, not days. A cloud server and database are ready in just minutes. A dedicated server takes longer to prepare: on average, about an hour, and when ordering a custom configuration, it may take several days. Expenses Expenses in a small project can be calculated as the sum of these items:  Infrastructure: server, disks, traffic, IP, domains, CDN.  Reliability: backups and storing copies separately.  Administration: updates, monitoring, on-call duty.  Downtime: how much one hour of downtime costs (lost revenue + reputation). Peak loads Sometimes stores run sales, order promotions from bloggers, or it is simply the business season.  In the cloud, you can scale horizontally, setting up another VM, and vertically, by adding more vCPU and RAM.  To speed up images and static files loading, you can connect a CDN—this is equally available in the cloud and on a dedicated server.  With a dedicated server, you either have to pay for all the reserve capacity year-round, or request installation of additional modules—which, again, can take some time (hours or days, depending on component availability). Reliability and recovery There are two main parameters to consider when planning recovery time.  RTO: how much time the project can take to recover after downtime (goal: up to an hour).  RPO: how much data you are ready to lose during recovery (goal: up to 15 minutes, meaning that after the system is restored, you may lose only the data created in the last 15 minutes before the failure). Check: are backups scheduled, are copies stored outside the production server, will the system be able to recover automatically if production goes down. Security At a minimum, configure the site to work through an SSL certificate, set up multi-factor authentication in the control panel for administrators, and create a private network between the web server and the database. Performance Usually the bottlenecks of e-commerce are the database, cache, and images. To avoid problems when scaling, put images and videos in object storage, keep the database as a separate service, preferably with data replication. Monitor the response times of the cart and checkout pages—this is where sales most often fail if pages respond slowly. Growth and flexibility We recommend starting with a simple and reliable scheme: one cloud server + one separate database (DBaaS) + object storage for media. If you plan a sale, add another cloud server and a load balancer to distribute user traffic. Afterwards, return to the original scheme. Flexibility in this case may be more important than the “perfect” architecture at the start. Team competencies If there is no system administrator or developer in the team who can perform sysadmin functions, choose simple solutions: ready CMS images, managed DBs, automatic backups, built-in monitoring. The less manual work, the fewer risks. Building Reliable Infrastructure For a small store, a simple logic works: start with minimal but healthy architecture, and quickly increase capacity during sales. And just as quickly return to normal mode. Start with a clean cloud server on Ubuntu LTS, connect access via SSH keys, and disable password login. At the firewall level, leave only ports 80/443, the others are better disabled.  An alternative option is to use control panels (cPanel, FastPanel, etc.), where the stack is deployed “out of the box” and administration is available through a convenient graphical interface. Place the database separately and connect it to the application through a private network. This way it will not be accessible from the internet, and delays will be reduced. Create a separate DB user with minimal rights for the site, enable daily backups and store them outside the production environment. For sessions and cache use Redis: it will reduce load on the database and speed up product cards, search, and order processing. Transfer media files to object storage: CMS can easily be configured so that new uploads go to S3. On top of this, connect a CDN for images, JS, and CSS—this will provide a stable response speed for users from any region and relieve a significant load from web servers. Do not forget about Cache-Control and ETag headers: they will allow users’ browsers to keep static files longer in local cache, which speeds up site loading and reduces server load. Backups are part of the daily routine. For the database, make a daily full backup and several incremental points during the day, store copies for at least 30 days, and place them in another project or storage. Protect files and media with versioning in S3 and weekly server snapshots. Once a quarter perform a recovery “from scratch” on a clean machine to check your RTO and RPO. Monitoring allows you to reduce risks and prevent losses before failures occur. Monitor the response time for the cart and checkout, CPU load, and free disk space. Threshold values should be tied to your traffic: if response time goes down and CPU stays high, get ready to scale. A sales campaign should be prepared as carefully as a separate release. A day or two before launch make a snapshot and bring up a second machine, enable the load balancer, and check that sessions are in Redis so carts are not lost. Prepare the CDN in advance: open the most visited pages, product cards, and search results. Increase database resources in advance and check indexes on fields used for filtering and sorting. After the campaign ends, disable additional servers. Approach security issues without excessive measures, but consistently and systematically. In the store’s admin panel, enable multi-factor authentication and roles, on servers, prohibit SSH passwords, limit by IP, and use fail2ban against password brute force. To avoid overpaying, calculate infrastructure by roles: server, DB, S3 storage, CDN, snapshots and admin hours. Launch additional capacity only during peak days, and under normal load, plan infrastructure based on basic needs. Evaluate the cost of downtime: if it is higher than the cost of an additional server for a week, reserving resources for a promotion will be economically justified. Migration from a dedicated server to cloud hosting is safe if done in two phases. Prepare a copy of the infrastructure, place media files in S3 storage, and run the site on a test domain with regular DB synchronization. On migration day, freeze changes, make the final dump, lower TTL, and switch DNS. After switching, monitor metrics and logs, and keep the previous production environment in “read-only” mode for a day for emergency access. If you need size guidelines, think in terms of load.  Up to one hundred orders per day is usually enough with a server of 2 vCPU and 4–8 GB of memory, a separate DB of 1–2 vCPU and 2–4 GB, SSD of 60–120 GB, and a combination of S3+CDN with Redis.  With a load of 100–500 orders per day it is reasonable to use two cloud servers and a load balancer, a database with 2–4 vCPU and 8–16 GB, and if necessary, add a read replica.  With stable peak loads, the infrastructure is scaled to 2–3 cloud servers with 4–8 vCPU and 16 GB, a database with 4–8 vCPU and 32 GB, replication, and mandatory CDN.  These are starting points; further decisions are dictated by metrics. Conclusion There is no single correct answer in this subject. The choice between cloud and dedicated server depends on traffic, frequency of peaks, team competencies, and how much one hour of downtime costs you. It is important not to guess, but to rely on numbers and understand how quickly you can increase capacity and recover after a failure. If the store is small or growing, it is reasonable to start with the cloud: one server for the application, a separate DB, and object storage for media. Such a scheme can be launched in an evening, handles sales without long downtime, and does not force you to pay for “reserve” all year. The main thing is to immediately enable backups, configure a private network between the server and the DB, and have a scaling plan ready for sales days. When traffic becomes steady and high 24/7, and requirements for performance and integrations tighten, it makes sense to consider a dedicated server or hybrid. Often a combination works where the frontend application and static files remain in the cloud for flexibility, while the heavy DB or specific services move to “hardware.” The decision should be made not by preference, but by TCO, RTO/RPO, and load metrics.
09 September 2025 · 10 min to read

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