This is annoying if WordPress asks for FTP username/password everytime you try to install or update plugin from admin panel.
Here is the quick hack to this.
1. Open the wp-config.php file (this will be located in the root of your wordpress installation)
2. Add the following line of code just after define(‘NONCE_KEY’, ‘put your unique phrase here’);
/* FTP login settings */
define('FTP_HOST', 'localhost');
define('FTP_USER', 'yourftpusername');
define('FTP_PASS', 'yourftppassword');
Note: Be sure to replace yourftpusername to your website’s FTP user name and yourftppassword to your website’s FTP password.
3. Upload the updated file. It works!
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Is this secure? I avoid updating the plugins from the admin panel if asks me for the FTP password, I do it manually.