AWS uses public–key cryptography to encrypt and decrypt login information.
Using Public–key cryptography, AWS process will encrypt the data and then the recipient uses the private key to decrypt the data.
The combination of public and private keys are known as a key pair. You will use this key pair to securely access your instances using a private key. You can create a key pair using the Amazon EC2 console or the command line. After you create a key pair, you can use it when you launch your instance.
Steps to create key pair are straight forward.