To start with, you're going to need to download and install TrueCrypt from this link. Simply select your operating system.
If you are going to be encrypting a flash drive or external hard drive with TrueCrypt that you want to take with you wherever you go, and use the flash drive on computers that don't have TrueCrypt installed, you'll need a portable version of TrueCrypt that can be found here.
It is a clean download link. If you don't trust me, don't download it, or scan it on VT.
You can get it yourself by navigating to the directory you have TC installed to, and copying all the files in that folder to your flash drive or external HD.
Simply copy the folder to your flash drive and you will be able to mount any file after opening TrueCrypt.exe

There is another way to mount an encrypted flashdrive, but I'll go into that later.
Creating an Encrypted File Container
Use this method if all you want to do is create a file as big as you want with encrypted contents that can be stored anywhere, and then mounted as a drive letter through TrueCrypt.
Method #1 does not have the "suitcase with a false bottom" effect talked about earlier that Method #2 does. But both have their advantages and disadvantages.
Method #1: No Hidden Archive
1. Open TrueCrypt after you have it installed. Then select "Create Volume".
2. From the three choices, select "Create an encrypted file container"
3. Click Next and then select "Standard TrueCrypt Volume".
Click next again.
4. Click "Select File" and navigate to the location on your hard drive where you want your volume to be, and specify a name for it.
You actually have to give it a name, rather than just select a file. As you can see, I simply named mine "Volume 2", as I already have a Volume 1 that I use.
You can move and re-name this after it is created.
5. Make sure that the box "Never Save History IS Checked". And click next.
6. Choose your encryption and hash algorithms.
All methods are very strong and you're safe with them all. You can just leave them as the defaults (AES & RIPEMD-160).
7. Enter the size of the volume that you wish to create.
8. Enter your desired password. Ideally, make it longer than 35 characters.
I don't recommend using keyfiles, because they can get deleted and you will be unable to recover the data in the archive.
Just use a really good password consisting of uppercase, lowercase, special characters, and numbers.
If you can't think of a password that is that long, try combining a few differnet passwords you may know, maybe a bank account number, some song lyrics, and keyboard configuration.
Just basically anything that's going to get you to that length.
This step is critical. Passwords are the biggest weakness.
9. Next just move your mouse around randomly for as long as you have patience to do so, and then select format.
10. Depending on the size of volume you chose to make, it may take a while to create a volume.
11. That's it you're done!
Method #2: File Container with Hidden Archive
1. Open TrueCrypt after you have it installed, on the tabs at the top, select the drop-down menu "Volumes"And then you're done!
2. Click "Create New Volume"
3. From the three choices, select "Create an encrypted file container"
4. Click Next and then select "Hidden TrueCrypt Volume". Click next again.
5. Select "Normal Mode" from the two options available.
You can experiment with Direct Mode if you wish, but it requires you to have a volume already made, that you wish to convert into a hidden archive.
6. Click "Select File" and navigate to the location on your hard drive where you want your volume to be, and specify a name for it.
You actually have to give it a name, rather than just select a file.
The name and location can be changed after creation.
7. Click next to begin specifying the options for the outer volume.
This is the part of the volume that you are going to be giving up to someone in case something very bad happens.
Ideally you should still use a strong password, and posssibly keyfiles to make it look legitimate.
8. Next click "Open Outer Volume" and put in some documents that are somewhat sensitive that you may have a legitimate reason to hide.
Examples of this could be your bank account statements, a text file containing your own passwords, documents outlining how to make explosives. Use your imagination.
But make sure that whatever you put in there isn't going to get you in too much trouble, but that it still explains your purpose for using TrueCrypt.
9. Click next. Now we begin to specify the settings for the hidden volume. It is important that you make this one stronger than the first with regards to password length etc.
10. Next specify the space you wish your archive to fill.
You are limited to the difference of the space between what you initially made your Outer Volume, minus the contents you put in your Outer Volume. e.g. (Outer Volume Space - Contents of Outer Volume = Max Space Available for Hidden Archive).
So it's important to make sure that your Outer Volume is initially created with an adequate size for both your Outer and Hidden Volumes.
11. Next enter your password and use and key-files that you may want for your Hidden Archive. If you still haven't got if yet, you need to use a separate password for both your Outer and Hidden Volumes.
12. Depending on the size of volume you chose to make, it may take a while to create a volume.
For instructions on how to mount and use your TrueCrypt file container see refer to the section "Mounting Your TrueCrypt Volumes"
Encrypting a USB Drive or Drive Partition
1. Insert the flash drive or connect the external hard drive to the computer.For instructions on how to mount and use your TrueCrypt volume, refer to the section "Mounting Your TrueCrypt Volumes"
2. Open TrueCrypt after you have it installed, on the tabs at the top, select the drop-down menu "Volumes".
3. Click "Create New Volume".
4. Select "Encrypt a non-system partition/drive".
5. Select whether you'd like to create a standard or hidden TrueCrypt volume.
If you don't understand what these are, refer to an earlier section.
For this demonstration, we will be creating a standard volume.
If you are creating a hidden volume on a USB or system drive, the steps are the same as creating a hidden file container.
6. Hit next, and then click "Select Device". This will bring up a list of all the drives attached to the computer.
7. Select the drive or partition that you wish to encrypt from the list.
8. Now there are two options at this step.
If you have data on the drive that you wish to preserve, select "Encrypt partition in place" - it will take longer, but nothing will be deleted.
This only works on NTFS Drives.
Alternatively, if you don't really care about anything on the drive, or make a backup you plan on moving in, you can select "Create encrypted volume and format it" - This will delete all data on the drive!
9. Next select your encryption methods.
10. Enter your desired password.
Ideally, make it longer than 35 characters.
I don't recommend using keyfiles, because they can get deleted and you will be unable to recover the data in the archive.
Just use a really good password consisting of uppercase, lowercase, special characters, and numbers.
If you can't think of a password that is that long, try combining a few differnet passwords you may know, maybe a bank account number, some song lyrics, and keyboard configuration.
Just basically anything that's going to get you to that length.
This step is critical. Passwords are the biggest weakness.
11. Next click "Format" a dialog box will appear notifying you that all data on the drive will be deleted. Click OK to continue formatting.
12. Depending on the size of volume you chose to make, it may take a while to create a volume. And then you're done!
Encrypting a System Partition or Entire System Drive
This is the method you would use if you are interested in full drive encryption. You will need to have TrueCrypt installed on your computer in order to do this. At this time, you are unable to run TrueCrypt in portable mode to encrypt your whole computer.
We are also not going to go into hidden operating system's and duel boot setup's right now, as there are many YouTube video tutorials and articles online that outline this beautifully, and it is beyond the scope of this tutorial, as there are many possibilities.
With the instruction below, you will simply learn how to encrypt your whole hard drive to be decrypted upon boot after the correct password is entered.
Furthermore, if you decide that full drive encryption is not for you, you may decrypt it permanently, and also change the password if you desire.
It is good advice to back everything up onto external hard drives before using this method in case something goes bad, and you loose your data, but it is not necessary.
In my experience, you will not notice your computer speed reduced at all by encrypting your entire hard drive.
1. Open TrueCrypt after you have it installed, and then click on "Create Volume".
2. Select "Encrypt the system partition or entire system drive" and click next.
3. Select "Normal" and click next. You are free to experiment with the any other options, but I recommend starting with a normal archive just to get your feet wet.
4. Now when selecting which area to encrypt, I recommend you just select "Encrypt the whole drive".
You may choose the other one but the setup will change a little, and it is more for those with multi-boot setups.
5. Next it will ask you whether you want to encrypt the "Host Protected Area".
I recommend that you do not encrypt this (e.g. select NO), but again it is up to you to know whether your computer manufacturer uses these areas to store data or not.
So assuming you selected No, click next to continue.
6. Next click Single-Boot. Unless you have multiple operating systems and decide you want the other's encrypted as well.
The majority of users here probably only have a single boot system.
7. Now choose your encryption and hash algorithms. As noted earlier, all methods are very strong and you're safe with them all. You can just leave them as the defaults (AES & RIPEMD-160). If you wish to research more on the methods, and come to a conclusion on which is best, feel free to do so.
8. Choose the password that you will use every time your computer is turned on.
Do NOT forget this password. EVER.
If you decide to change this later, you may. Also note that key-files are not supported for full drive encryption.
9. Next just move your mouse around randomly for as long as you have patience to do so, and then select next.
10. You will now have to create a "Rescue Disk" for three reasons that are outlined in the TrueCrypt dialog box.
Please read over these steps and become familiar with them.
The rescue disk will basically allow you to boot your operating system from a disk to repair it if something becomes damaged.
Even if someone, including you, finds this disk, they will be unable to boot the computer without knowing the password. So again, DO NOT forget your password.
So select the location where you want the save the ISO, and name the file.
11. You will now need to burn this ISO to a disc.
If you are confused about how to do this, or need software, TrueCrypt has some links to free software that you can use here.
I recommend ImgBurn for burning ISO files.
It can be found for download here.
12. Upon successfully burning the ISO file to the disc, you can click next, and TrueCrypt will verify that you have done it correctly.
13. Now you will have to decide what kind of Wipe Method you want to use.
Depending on you computer's speed, and your patience, you can choose a different wipe method over another.
This step basically help's keep the data secure and unrecoverable.
Of course I recommend the Gutmann 35-pass method, but this is not appropriate for everyone. However, I suggest that you at least use SOME method of wipe.
Please note that you will still be able to use your computer if you decide to use the Gutmann or DOD methods, it will simply run in the background when your computer is started until it finally finished wiping and encrypting.
Just as an example, I have a 1TB hard drive, and when encrypting it, I used the Gutmann method. It took almost 4 days of running it non-stop on 8GB of RAM and an i5 processor.
14. After you have decided on a Wipe method, TrueCrypt will want to make sure everything is going to work properly in a System Encryption Pretest. Click Test.
A dialog box will appear with instructions about what's going to happen, and what to do if something malfunctions.
I recommend copying the contents of this to a text file and e-mailing it to yourself in case you need to read it from another computer.
15. You will now have to restart your computer. Click "Yes" to restart.
16. Upon booting up your computer, you will come to a black CMD screen which says "TrueCrypt Boot Loader 7.0a - Enter Your Password" etc.
17. You will need to enter the password you chose here. It will then flash "Booting" across the screen and your operating system will be loaded like normal.
18. Once your computer is booted, TrueCrypt will be loaded and it will tell you that the Pre-Test was completed successfully.
Next click Encrypt to start encrypting. It will give you another dialog box pop-up. It is a good idea to copy this down in a text file and e-mail it to yourself like the last set of instructions.
19. Now it will start encrypting your hard drive.
Depending on whether you chose a wipe method or not, and how large your hard drive is, this can take anywhere from an hour or so all the way up to weeks before it completes.
As explained earlier, you can still use your computer while this process works in the background.
20. After it is done encrypting, TrueCrypt will now tell you that it has completed the encryption successfully. Hit "OK", and then finish.
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