After you have successfully downloaded and installed Truecrypt, select the option “Create Volume” to create a new drive. Now choose “Create an encrypted File Container“ to create a new file where all your encrypted data is stored.
The option “encrypt whole disk” is very dangerous in case an operating system tries to make the disk accessible it can, overwrite some important encryption data. This can destroy the whole encrypted disk and the data will be completely lost so be very careful with this option. If you select “Create an encrypted File Container” you can easy backup your encrypted files by simply copying it.
Now choose standard , the option hidden creates a hidden encryption inside the encrypted system for plausible deniability, this is also very dangerous because if you don’t know exactly what you’re doing, writing data on the encrypted volume can damage the hidden container and vice versa.
Now hit next
Choose a location where you want the encrypted file to be stored and hit next
In this window you select the algorithm, preferably AES which is very strong and safe if your system has enough power you can choose a combination of algorithms, to test if your system is fast enough you can do a benchmark via the benchmark button.
Now choose the size of the file.
Note: the file should be a little bit larger than your data that should be encrypted, the size of the file can’t be changed afterwards.
In this dialog you have to enter a password, preferably with special characters numbers and upper and lower case letters you can also choose to use key files which can contain a lot more characters, if you use a long password the “Display Password option” is very handy.
Hit next after you’ve typed in your password twice.
Now move the mouse randomly across the Truecrypt window to create random numbers this increases the strength of the encryption algorithm.
If you feel like having created enough random numbers, hit format to create the file, when finished exit to leave.
In the main window click on “Select File“ and choose the file you’ve just created now select the drive letter you want the file to be mounted and press mount. Now you will be prompted again for your password or key files.
Now you’re done you can close truecrypt it will keep working in background. you can use your new drive like any normal drive except you shouldn’t move the file container when mounted.