Lastpass user here although two passwords that are never in it are lastpass (as it'd be pointless) and my e-mail account which has an insanely long complicated password which I somehow manage to change frequently.
primarily as EVERYTHING is recovered by that e-mail account or my phone*
I'm running DashLane and rate it, using it at work too as from a business perspective it offers great control ensuring other members keep their passwords secure, we also own the account and can lock them out in a sense if they leave.
I run a very secure master password. It doesn't hold any banking account passwords etc and because of it every password on every website is unique and I have a backup of my main e-mail password
In fairness that bug has now been fixed, Lastpass are generally very quick on that type of thing.
As for the storing of the password, they store the password in a one-way salted hash form using your username (email). They only ever recieve the salted hash version. Here is a link to them explaining it:
As above, probably safer than a physical paper record.
With a long password it's practically impossible to crack the database, but on the other hand the usual precautions of doing backups applies.
With a paper copy it's only as safe as the way you're storing it (fire, flood, theft risks) and it's harder to make duplicates and distribute them to safe places than a little digital file.
If you have a test run with keepass for just a few sites and practice opening/adding to/saving/closing/syncing/backing up the database you'll work out the pros and cons.
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