If you would like to use the cPanel tool to password protect your folders then you need to follow the steps;
The .htaccess File;
Adding password protection to a directory using .htaccess takes two stages. The first part is to add the appropriate lines to your .htaccess file in the directory you would like to protect. Everything below this directory will be password protected:
AuthName "Section Name"
AuthType Basic
AuthUserFile /home/username/.htpasswds
Require valid-user
There are a few parts of this which you will need to change for your site. You should replace "Section Name" with the name of the part of the site you are protecting e.g. "Members Area".
The /home/username/.htpasswds should be changed to reflect the full server path to the .htpasswds file (more on this later). If you do not know what the full path to your webspace is, check your domain’s cPanel. Look on the left "stats" column of the cPanel.
The .htpasswds File
Password protecting a directory takes a little more work than any of the other .htaccess functions because you must also create a file to contain the usernames and passwords which are allowed to access the site. These should be placed in a file which (by default) should be called .htpasswd. This can be placed anywhere within you website (as the passwords are encrypted) but it is advisable to store it outside the web root (in your home directory) so that it is impossible to access it from the web.
Entering Usernames And Passwords
Once you have created your .htpasswd file (you can do this in a standard text editor) you must enter the usernames and passwords to access the site. They should be entered as follows:
username:password
Where the password is the encrypted format of the password.
For multiple users, just add extra lines to your .htpasswd file in the same format as the first.
Accessing The Site:
When you try to access a site which has been protected by .htaccess your browser will pop up a standard username/password dialog box.