Encrypting files, folders, and drives on your computer means that no one else can make sense of the data they contain without a particular decryption key—which in most cases is a password known only to you.
So while someone could get at your files if they know your password (the decryption key), they won't be able to take out a drive from your system and access what's on it, or use a second computer to read your data—it'll all be gibberish. It means that if your Windows or macOS machine gets lost or stolen, you don't have to worry about someone using the data on it.
How the most popular operating systems have handled encryption has changed over the years, and there are third-party tools that give you more encryption options to choose from. I'll guide you through everything you need to know about these options to help you pick the right one.
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