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Basically, a website talks to your computer, through your web browser, and lets you view the website.

Now, if the website has to explain everything, from the start, to your computer each time you visit it becomes time consuming. So the website leaves a bit of information on your computer, and takes a bit of information from your computer, so that next time you come back to that site it can load nice and quickly.

This is how websites can remember your passwords and logins, every website does it and it's a normal part of using the internet. Theres no need for panic or outrage.