If your hosting provider is not give you any password creation tool, but you want to protect your Joomla! admininistrator directory with an encrypted password, do the following.

Create an empty file .htaccess in your Joomla! administrator directory. Put the following in it:

AuthType Basic
AuthName "Joomla Administrator"
AuthUserFile /full/path/to/joomla/administrator/.htpasswd
<Limit GET>
require valid-user
</Limit>

Then create an empty file .htpasswd in the same directory. You will have to enter the user name and encrypted password in this file.

An easy tool to create an encrypted password is here. Enter the user name and password and click encrypt.
On the next page you will see the user name and password that will have to be put in the .htpasswd file.
Copy and paste this line in your .htpasswd file. To add another user, encrypt the user name and password and put them on the line below the first one.

Now try to login your admin panel.

I do this on my friend's Joomla site and it is working perfectly.