That depends. Are you using ROT-13 encryption?
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Just use a database instead of a text file? or indeed use the facebook login!
to be honest, you're just now learning how to code, so it doesn't matter if you use encryption, databases, or anything really.
If you can get it to work you're learning something.
Now, as you might know, text-files aren't the most secure way to store passwords. Secondly, there really is no secure way to store "raw" passwords - which is a password without any "hash" or encryption. The real downfall of text-files for your database is the fact it gets slow once you get a lot of users. I don't think you need to worry about that. :)
Eventually you'll learn what all those words mean- but it's not important right now.
Ideally in the future you'll use a database to store users and hashed passwords for security reasons. Right now, for your own personal use- using a text-file is a good way to do it for the sake of learning.
Did you get it working?
Wait a second S-P-N are you paulgraham him self? Then you're dutch right and studied on Nova right?
Oowh rofl well i was in school with him xD