A number of scenarios can result in you needing to encrypt your data. TrueCrypt is a free and open-source software which lets you create an entire virtual encrypted disk within a password protected file, apart from encrypting entire partitions or storage devices. We’ll show you how to use it in this guide.

TrueCrypt is available for download for Windows, Linux and Mac environments. Get your copy and install it.

Click on Create Volume.

Choose where do you want the encrypted files to reside. The first option is the most common scenario, so we shall try that. Use the second option if you want to encrypt a USB drive or external Hard disk.

You are presented with the option of creating either a standard or hidden volume. The latter is of course, safer in certain cases.

In the next screen choose where do you want to place the encrypted file container. This file container can be moved or renamed like any other file but shall need a password through TrueCrypt to open it.

You can specify the encryption algorithms to be used in the next screen. If you are unsure about what to choose, leave it at default.

Specify the volume size and password in the next screens.

Move your mouse as randomly as possible within the Volume Creation Wizard window at least for 30 seconds. The longer you move the mouse, the better. This significantly increases the cryptographic strength of the encryption keys (which increases security). Then click Format.

To mount the newly created encrypted drive, choose a drive letter in the main screen and click on Select File to browser to your file. Type in your password and your virtual disk appears!

After you’ve finished copying files in/out of the virtual disk, click Dismount to disable access to it.

Be careful that your encrypted files can be easily deleted by a third-party without knowing the password, so hide them in a safe place.

There you go, virtual encrypted disks made easy!