Ideally you shouldn't store passwords at all. You store the hash to the password. In this way, someone at your business, or someone with access to your business, or if someone mistakenly installs some malicious software, your users passwords can never be retrieved.
When someone logs into your software/site they send their password. Your server then converts that password to a hash and compares it to a hash associated with their account, and the password then goes away. No one can steal your customer password list since they are never stored and thus cannot be compromised.
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