Encryption of sensitive user data - how to manage the secret data to generate the key

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First the end user must authenticate to log in the app. I want to encrypt the password he entered. How do you do that? How do you deal with the secret message to generate the key?

Same question with the user data information: I would like to make transparent the generation of the key. Is there a way to generate safely a secret message or ask the user to generate a secret message and hide it into the code?

Thanks to point me to some reading that explains how to do that?

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