Instant Sign-Up without password (keep password in database?)

I’m working on a Bubble app that is to be opened in an iframe on a site. The site has information about the user and upon opening the iframe will send this information to Bubble. At this point I want to sign the user up within bubble (if they’re not in the bubble database) or log them in (if they’re in the database). The site will send the email, but then what do I do with the password? Can I generate a password on the spot, sign up the user with the email and the generated pass, encrypt it and keep it in the database? Is that a correct way of doing it? Or is there a better way?

Don’t know about the best way but you can create a password in the dynamic field on the workflow sign up (ex:1234) after you can give the same pre-generate password to everyone and sign them up or log them in with it