You can also just indent the block of code by four spaces. I find the four spaces to be easier when using an external editor to type stuff up first, or using four tildes when typing directly into the post, but to each his own.
Step three of your process is actually choosing a cryptographic hashing function, not an encryption algorithm.
You can edit your post to include the code blocks so that its more readable and you'll probably get a few more upvotes...