Should the password be plain text when creating a user through the API?

[Siddhu_Dhangar]

is there any way to pass an encrypted password instead of plain text password ? we are developing one app in which we are using /session api for checking authentication of the user. where username and password need to be submitted. i noticed one thing that lets say if you go to browsers developer tool , where you can actually see your plaintext password which we pass while logging. so if anybody has my laptop access, then password may get hacked right.