In the next dialog, you can change your PIN. On the right side, click the Change button under the PIN section. To change a PIN for a User Account in Windows 10, do the following. Note: if you need to start the computer in Safe Mode, the PIN does not work. To set up a PIN, it is necessary to have a password set for your user account. However, a PIN does not replace the password. After too many incorrect guesses, the device will become locked. For example, it will protect against PIN brute-force attacks. If your device comes with a TPM module, the PIN will be protected and encrypted additionally thanks to the TPM hardware support. 
A PIN won't be sent anywhere and truly acts like a local password stored on your PC.
When you are signing in with a password on a device which is online, it is transmitted to Microsoft's servers for verification. Think of it as a password for a local (non-Microsoft) account. While you can use your password to sign in to your Microsoft account from any device and any network, a PIN can only be used with one device where you created it. The main difference between a PIN and a password is the device on which they can be used.
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