How can we encrypted user credentials when they are transmitted with php? (in login forms)
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“user credentials” are not just the username and password. A user credential is any data that is used for authentication. There is no point in using https for the login page if you just spill the session id a few milliseconds later by using http. The session id, is a credential and must be protected just like a username/password.
You must use https for the entire session. Spilling the session id over HTTP is a clear violation of The OWASP top 10: Broken Authentication and Session Management.