How it works
Each character carries 5 bits, so the output is longer than Base64, about 60% larger than the input. The alphabet avoids digits that look like letters (no 0, 1, 8 or 9). “Hello” encodes to JBSWY3DP.
Where it is used
Secret keys for authenticator apps, some file and identifier schemes, and systems that ignore letter case.
Compared with Base64
Base32 is longer but safer to dictate and to store on case-insensitive systems. Base64 is more compact. See Base64 vs Base32.
Try it
Use the Base32 and Base58 tool, and read the guide for examples.
Common misunderstanding
Like Base64, it is an encoding and not a form of encryption.