Home » Password Managers » Guides » How Does a Password Manager Work? Explained

How Does a Password Manager Work? Explained

Disclosure: All information on this site is harmless and purely for educational purposes which is why we post only authentic, unbiased information! The affiliate links are really there for discounts for our readers and for us to earn small commissions that help us stay afloat! Thanks!

Having a password manager in this advanced and technological world is nothing but compulsory now. Since they help protect our online data, while also adding ease to the remembering factor for us; they’re undoubtedly a great help for all of us. And since online security is also a serious matter, you can never really rely on your luck nowadays. 

And if we talk about these password managers as one of the most suitable online security options we can avail, it might not be termed wrong. Since it doesn’t just eliminate our worries of remembering all the numerous passwords, but it also ensures that no one can hack them. 

Hence, there’s no doubt in the fact that password managers come as one of the most significant benefits of living in this smart world. But that’s not enough information for a newbie to rightly understand what a password manager might be. Well, I thought so! And now, you might want to search on how these password managers work and protect our credentials. 

But before you do that, let’s say some working differences make each password manager better or less than the other one. But when it comes to learning the basics, you don’t have to go in the details of every single one of them. Hence, to help you figure it our accurately; we’ve aligned the different types of password managers, and how one mainly works. So let’s go ahead and discover them, shall we? 

Types of Password Managers:

Before you head on to understanding how a password manager works, it’s also essential to learn the different types of password managers there are. 

This mainly refers to the three different types of password managers, i.e, online password managers, offline password managers, and stateless password managers. Understanding how these different types of password managers serve us can help us understand what we exactly get.

Online Password Managers:

Online password managers are a great way to store all your passwords and personal info, especially when you’re more likely to access your bank accounts and other apps through multiple devices.

These are some of the easiest ones that anyone can get a hold of and manage to utilize. Since their simple and sorted working is nothing too complicated, it’s a perfect type of password manager for those who can’t bare the technical details. 

Also, these types of password managers automatically sync all your data while allowing you to avail of a smart user-experience through them. But since they store all your credentials online, you can’t always trust them with all your data blindly. 

Offline Password Managers:

These offline password managers keep your data safely stored in a single file on your computer, ensuring that you can safely access them there without anyone’s interference. 

Hence, when you go for an offline password manager, you can be sure that you’re the only one having access to your data. Other than this, you can easily manage your data; however, you like. And by the sounds of this, it’s quite apparent that you’re the only one going to managing your data through these password managers, as there are not many smart features coming your way. 

But when it comes to ensuring your credential’s safety, it’s always better to go for the option that serves you with your sign needs, right? 

Stateless Password Managers:

Now to eliminate the risks of having your passwords exposed to any website in any way, there are a few password managers that don’t create encrypted copies of your passwords. These password managers allow you to generate passwords with a unique strategy and ensure that they aren’t easy to access for anyone.

Hence, these types of password managers, i.e., the stateless password managers, eliminate the need to have a password backup. 

Now there are some cons to this type of password manager, too, as they don’t provide you with a smart user experience. But they’re still worth it when it comes to ensuring your credentials safety through them. 

General Working of a Password Manager:

Now even though there are different types of password managers you can opt for, their working isn’t as different as they sound to be. That’s simply because the significant responsibility of a password manager is to safely secure all your stored credentials in a file or vault. And after that’s done, you only need to remember a master password to access your other passwords, at times of need. 

Now using a password manager is quite a safe and secure way, especially in terms of writing your passwords anywhere or forgetting them every now and then. But it’s also essential for one to understand how safe a password manager is. Since each of the password managers has its security and encryption methods, you can’t trust all of them the same way. So even with the different types of password managers and their similar working, you can’t miss out on the different security aspects they comprise of. 

But before you get stressed up on figuring the most suitable password manager here, have you focused on what all of them offer you? Despite what type of password manager you utilize, they all have some benefits that one can surely not neglect. These common benefits include;

  • You get to protect all your personal information.
  • Faster accessing of your credentials.
  • You aren’t just limited to storing your passwords only.
  • Using it on all devices is possible.
  • Login doesn’t remain complicated or time-taking.
  • No more password forgetting.
  • Get automatically generated passwords anytime, anywhere.
  • There’s just one password to remember. 


Understanding how a password manager works and all its types are only the beginning of figuring out which one to trust. But even with the struggle of finding the most suitable one that would serve you, there are some benefits they all serve you with. Hence, this way or that, you’re always being benefitted with a password manager around.

So it’s time you go ahead and figure what more benefits you want to avail of from the different options you have. And once you’re sorted with that, there’s nothing stopping you from having a lifetime experience of safe and secured passwords. Sounds pleasing, right? Well then, it’s time you step up and go for it!

Leave a Comment


Unlock the power of online security with our in-depth reviews and expert insights. Discover the best VPNs, password managers, and privacy tools to safeguard your digital world.