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Cloud vs. Local Password Managers: Which One Is Right For You?

When it comes to picking a password manager, one feature stands out above the rest: where are your passwords stored? This is more important than the others, including random built-in password generators, synchronization, and two-factor authentication (2FA). Also check out: offline password managers review

Password managers enable you to use complicated and strong passwords to protect your privacy and security on the internet. To do this, the passwords themselves must be safe. So, which choice is better for you: giving your credentials to a corporation or keeping them yourself?

What Exactly Are Password Managers, and Why Do They Require Storage?

A password manager is a program or browser add-on that stores a large number of randomized passwords and login credentials.

Without one, you’d have to depend on a text document or a pen and paper to keep track of all your passwords. Worse, you might use passwords that are weak yet simple to remember.

None of these alternatives are safe or convenient. One of the biggest reasons for hacked internet accounts is weak passwords.

And writing down your passwords makes them simple to steal.

Password managers perform all of the effort of storing your passwords in one convenient location. They need storage since this data must be stored somewhere.

Passwords, like other forms of data and files, have two storage options: local or cloud-based. So, what’s the distinction?

What Is the Meaning of Cloud-Based Password Managers?

Cloud-based password managers store your credentials mostly on distant servers. The servers are often owned by the same firm that controls the password manager you’re using.

You may potentially be the owner of them. This is true whether you self-host your password manager, purchase or rent a server, or use free cloud storage services like Google Drive, Dropbox, and iCloud.

What Is the Meaning of Local Password Managers?

Password managers that keep your data locally on your device and those that store it online might be similar. This password manager saves all of your passwords both locally and remotely.

You may save them on your laptop or desktop computer, tablet, smartphone, or an external storage device like a USB stick.

Which choice is best for you?


Security is key when picking a password manager.

If you are not managing cloud storage servers, security is not your responsibility.

Look for classic password managers with strong encryption. Prefer end-to-end encryption, which decrypts passwords only on your device. Since you’re responsible for password security, pick the strongest encryption.


Privacy is not security. Keep your data and information secret and manage who gets access to it.

whether privacy is a concern, verify whether the commercial password manager has a zero-knowledge or no-logs policy before joining up. The company promises to keep user data secret by following this policy.

Local storage doesn’t compromise privacy. Free, open-source password managers don’t need sharing.


Prices vary for both options. Free password managers store many passwords on their servers. Most free plans have restrictions, so you might need to upgrade to premium.

Two storage options are available. Certain password managers offer free and paid options, allowing you to store your data online and offline.

About Michael Tavares

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