Careful with this option. I had it on, and will never use it again. Read this thread:
https://forums.motorola.com/posts/b027ce4327Basically data encryption doesn't just encrypt OS and/or application-crerated data, but all data on internal storage *and* any removable sdcard, including all files that existed prior to turning on encryption or were copied over later, i.e. it's not controlled by file, but by partition.
So if you take out the removable SDCard and try to use it anywhere else (in case phone dies, or you have to do a factory reset), you are screwed. You can't even re-read it in the same phone and using same PIN after a factory reset, because there is some randomizing factor involved. I got bitten by this a few days ago, had to do a reset due to Home button no longer working, and assumed the external SDCard was not encrypted as I bought the card a few weeks ago. Just in case, I took it out during reset. End result: putting the card back in, all files were unreadable. Thankfully for me, 99% of the files on that card were podcasts that I could redownload.
Bottom line:
Without encryption...you will lose your data (BTC) if your phone is stolen.
With encryption...you will lose your data (BTC) if your phone is stolen *or* your phone dies *or* you forget to make a backup to an external device (not to the internal or mountable SDCard!) before factory reset.
