Is the password based connection in SFTP secured?

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Magesh
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Is the password based connection in SFTP secured?

Hi,

Is the data encrypted when the SFTP command is invoked with the username and PASSWORD? ex.,
>SFTP username:PASSWORD@server

Or Is it that the data is encrypted only when the public/private keys are used to connect to the server? ex.,
>SFTP /privatekey=keyfile

Thanks,
Magesh

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