diff --git a/src/LoginGate.tsx b/src/LoginGate.tsx
index 6395535..babd157 100644
--- a/src/LoginGate.tsx
+++ b/src/LoginGate.tsx
@@ -7,11 +7,57 @@ import LoginForm from './components/LoginForm';
 import EncryptionLoginForm from './components/EncryptionLoginForm';
 
 import { store, CredentialsType } from './store';
-import { login, deriveKey } from './store/actions';
+import { deriveKey, fetchCredentials, fetchUserInfo } from './store/actions';
 
 import * as C from './constants';
 
 import SignedPagesBadge from './images/signed-pages-badge.svg';
+import LoadingIndicator from './widgets/LoadingIndicator';
+
+
+function EncryptionPart(props: { credentials: CredentialsType, onEncryptionFormSubmit: (encryptionPassword: string) => void }) {
+  const [fetched, setFetched] = React.useState(false);
+  const [isNewUser, setIsNewUser] = React.useState(false);
+
+  const credentials = props.credentials.value!;
+
+  React.useEffect(() => {
+    store.dispatch<any>(fetchUserInfo(credentials, credentials.credentials.email)).then((userInfo: any) => {
+      setIsNewUser(userInfo.error);
+    }).finally(() => {
+      setFetched(true);
+    });
+  }, [credentials]);
+
+  if (!fetched) {
+    return <LoadingIndicator />;
+  }
+
+
+  return (
+    <Container style={{maxWidth: '30rem'}}>
+      <h2>Encryption Password</h2>
+      { (isNewUser) ?
+        <div>
+          <h3>Welcome to EteSync!</h3>
+          <p>
+            Please set your encryption password below, and make sure you got it right, as it <em>can't</em> be recovered if lost!
+          </p>
+        </div>
+        :
+        <p>
+          You are logged in as <strong>{credentials.credentials.email}</strong>.
+          Please enter your encryption password to continue, or log out from the side menu.
+        </p>
+      }
+
+      <EncryptionLoginForm
+        onSubmit={props.onEncryptionFormSubmit}
+      />
+    </Container>
+  );
+}
+
 
 class LoginGate extends React.Component {
   public props: {
@@ -24,9 +70,9 @@ class LoginGate extends React.Component {
     this.onEncryptionFormSubmit = this.onEncryptionFormSubmit.bind(this);
   }
 
-  public onFormSubmit(username: string, password: string, encryptionPassword: string, serviceApiUrl?: string) {
+  public onFormSubmit(username: string, password: string, serviceApiUrl?: string) {
     serviceApiUrl = serviceApiUrl ? serviceApiUrl : C.serviceApiBase;
-    store.dispatch<any>(login(username, password, encryptionPassword, serviceApiUrl));
+    store.dispatch<any>(fetchCredentials(username, password, serviceApiUrl));
   }
 
   public onEncryptionFormSubmit(encryptionPassword: string) {
@@ -71,16 +117,7 @@ class LoginGate extends React.Component {
       );
     } else if (this.props.credentials.value.encryptionKey === null) {
       return (
-        <Container style={{maxWidth: '30rem'}}>
-          <h2>Encryption Password</h2>
-          <p>
-            You are logged in as <strong>{this.props.credentials.value.credentials.email}</strong>.
-            Please enter your encryption password to continue, or log out from the side menu.
-          </p>
-          <EncryptionLoginForm
-            onSubmit={this.onEncryptionFormSubmit}
-          />
-        </Container>
+        <EncryptionPart credentials={this.props.credentials} onEncryptionFormSubmit={this.onEncryptionFormSubmit} />
       );
     }
 
diff --git a/src/components/EncryptionLoginForm.tsx b/src/components/EncryptionLoginForm.tsx
index 3c2e4b2..b90dd93 100644
--- a/src/components/EncryptionLoginForm.tsx
+++ b/src/components/EncryptionLoginForm.tsx
@@ -89,7 +89,7 @@ class EncryptionLoginForm extends React.PureComponent {
               color="secondary"
               disabled={this.props.loading}
             >
-              {this.props.loading ? 'Loading…' : 'Log In'}
+              {this.props.loading ? 'Loading…' : 'Continue'}
             </Button>
           </div>
         </form>
diff --git a/src/components/LoginForm.tsx b/src/components/LoginForm.tsx
index e112093..9b0a926 100644
--- a/src/components/LoginForm.tsx
+++ b/src/components/LoginForm.tsx
@@ -24,11 +24,10 @@ class LoginForm extends React.PureComponent {
     server: string;
     username: string;
     password: string;
-    encryptionPassword: string;
   };
 
   public props: {
-    onSubmit: (username: string, password: string, encryptionPassword: string, serviceApiUrl?: string) => void;
+    onSubmit: (username: string, password: string, serviceApiUrl?: string) => void;
     loading?: boolean;
     error?: Error;
   };
@@ -41,7 +40,6 @@ class LoginForm extends React.PureComponent {
       server: '',
       username: '',
       password: '',
-      encryptionPassword: '',
     };
     this.generateEncryption = this.generateEncryption.bind(this);
     this.toggleAdvancedSettings = this.toggleAdvancedSettings.bind(this);
@@ -62,7 +60,6 @@ class LoginForm extends React.PureComponent {
 
     const username = this.state.username;
     const password = this.state.password;
-    const encryptionPassword = this.state.encryptionPassword;
 
     const errors: FormErrors = {};
     const fieldRequired = 'This field is required!';
@@ -72,9 +69,6 @@ class LoginForm extends React.PureComponent {
     if (!password) {
       errors.errorPassword = fieldRequired;
     }
-    if (!encryptionPassword) {
-      errors.errorEncryptionPassword = fieldRequired;
-    }
 
     if (process.env.NODE_ENV !== 'development') {
       if (this.state.showAdvanced && !this.state.server.startsWith('https://')) {
@@ -89,7 +83,7 @@ class LoginForm extends React.PureComponent {
       this.setState({errors: {}});
     }
 
-    this.props.onSubmit(username, password, encryptionPassword, server);
+    this.props.onSubmit(username, password, server);
   }
 
   public toggleAdvancedSettings() {
@@ -159,16 +153,6 @@ class LoginForm extends React.PureComponent {
           <div style={styles.forgotPassword}>
             <ExternalLink href={C.forgotPassword}>Forgot password?</ExternalLink>
           </div>
-          <TextField
-            type="password"
-            style={styles.textField}
-            error={!!this.state.errors.errorEncryptionPassword}
-            helperText={this.state.errors.errorEncryptionPassword || 'Choose a new one if not already set'}
-            label="Encryption Password"
-            name="encryptionPassword"
-            value={this.state.encryptionPassword}
-            onChange={this.handleInputChange}
-          />
           <FormGroup>
             <FormControlLabel
               control={