Store passwords in encrypted or hash in database

Hi i have a table which stores user information as well as a password, how do i go about saving it in encrypted or hash depending on which is the best protection. I have the following stored procedure which does what i want but at the moment it stores it in plain text;

 ALTER PROCEDURE [dbo].[Users_InsertNewUser]
(
@USERS_ID int,
@UserName nvarchar(250),
@Password nvarchar(250),
@EmailAddress nvarchar(250)
)
AS
BEGIN

INSERT INTO Users
(UserName,Password, EmailAddress)
VALUES
(@UserName,@Password, @EmailAddress);

SELECT SCOPE_IDENTITY()

END

  ...