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Firefox Password Protection?

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I heard from listening to Kim Komando at komando.com that it's very easy for hackers to hack and steal your passowrds. I also found out though convent to store your passwords in Firefox so it automatically fills in log in areas is also risky. How do you protect your Firefox passwords from hackers? Also Komando spoke of a type of security item that protects your passwords by using software and hardware. I don't know the name. Maybe you guys might know of it or something like it. She said it's as small as a flash drive and connects to a USB port and provides protection for your passwords. She said it's the same kind of thing networks use to protect their passwords. Know of anything like this? Thanks.
Here are some steps you can take to protect your saved passwords, if you still want to keep them:
  • In Firefox, click on Tools.
  • Then click on Options.
  • Click on Security tab.
  • Under the “Passwords” section, tick the check box for Use a master password.
  • If you have never set a master password before, a “Change Master Password” box will appear. Enter and re-enter the new password you want to use as master password. Then, click on “OK”. If you have set a master password before and want to change the password, click on Change Master Password.
  • Click “OK” again.

Remember that you must remember the master password after enable the the protection to secure the saved password. If the master password is lost or forgotten, you will have a hard time to recover the master password and unable to view the saved password anymore.

Protect Firefox Password Manager Saved Passwords for Sites » My Digital Life

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So I type this master password in every time I want to view my list of passwords, or is it for typing in every time I can log into a site?

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