Comment: Truecrypt

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I'd like to add Truecrypt to your list. You can encrypt whole drives, volumes, folders or just files. If you encrypt your drive, it needs a password to boot or read any of the data. Once it's booted, it's no longer safe though but you can do just files too.

Also about passwords, 8 characters is no longer enough. Have at least 12 and more if you can.

A really good password is "thiscouldbebetterbuti'lltakeitbecauseitworks". Computers have a hard time cracking language. A long sentence is more secure than a short random amount of letters and numbers.

KeePass is also good for passwords.
You can store your passwords (which needs to be encrypted and safe) or you can just generate good ones.