The recommended way of storing passwords is hashing. Hashing works one way,
you can't calculate the actual password out of hash value. DotNet implements
hashing in function
System.Web.Security.FormsAuthentication.HashPasswordForStoringInConfigFile
The recommended way of storing passwords is hashing.
Don't forget that if you choose to store the password as a hash, you
will never be able to remind the user of their password (there is no way
to get the password out of the hash). Instead you will need to provide a
reset password feature which perhaps, changes the password to random
chars and e-mails it to them.
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