What's YOUR 1Password "workflow"?

I recently purchased 1Password because of the desire to make all my passwords more secure due to all these recent big hacks that have been happening lately. Only problem is I don't exactly know what I'm doing or if I'm even using the thing right.

I currently only have the desktop version and plan to get it on iOS when I'm more familiar with it.

So I'm wondering how you guys effectively use 1Password and how you make it integrate seamlessly with your daily browsing? "Seamlessly" is probably the most operative word in that sentence as it feels like a chore to set everything up on my end.

Here's how I use it now:

  1. Scratch head
  2. visit a website I frequent
  3. enter password
  4. 1Password asks me to enter master password to save the site
  5. enter password
  6. not really know what just happened
  7. rinse, repeat
Ideally, what I'd like to do is have it generate random unique passwords for all my sites, save them, and somehow have it do what I need it to do without me having to check on it on and off.