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Normal cookies are used to remember the user who is visiting the website in order to show the appropriate content. Without them, some websites would cease to function. Cookies are also used to remember the passwords and "signed on" status of users.

HTTP cookies are used by Web servers to differentiate users and to maintain data related to the user during navigation, possibly across multiple visits. HTTP cookies were introduced to provide a way to implement a "shopping cart" (or "shopping basket"),[1][2] a virtual device into which a user can store items they want to purchase as they navigate the site.

Allowing users to log in to a website is another use of cookies. Users typically log in by inserting their credentials into a login page; cookies allow the server to know that the user is already authenticated, and therefore is allowed to access services or perform operations that are restricted to a user who is not logged in.

Many websites also use cookies for personalization based on users' preferences. Sites that require authentication often use this feature, although it is also present on sites not requiring authentication. Personalization includes presentation and functionality. For example, the Wikipedia website allows authenticated users to choose the webpage skin they like best; the Google search engine allows users (even non-registered ones) to decide how many search results per page they want to see.

Tracking cookies, however, are used to track internet users' web browsing habits. Websites leave these tracking cookies on users' computers, and tracking software can determine where a user has been by viewing the cookies left on the computer. Different websites can share tracking cookies, and each website with the same tracking cookie can read the information and write new information into it. Websites that use tracking cookies continue to recreate cookies in the browser each time a site is visited.

Cookies are also used to track users across a website. Third-party cookies and Web bugs, explained below, also allow for tracking across multiple sites. Tracking within a site is typically used to produce usage statistics, while tracking across sites is typically used by advertising companies to produce anonymous user profiles (which are then used to determine what advertisements should be shown to the user).

In general, a tracking cookie is not dangerous. They may potentially infringe upon the host's privacy, but they are easily removed. A tracking cookie cannot cause any system instability. Current versions of popular web browsers include options to delete 'persistent' cookies when the application is closed. This doesn't help at all.