Obviously neither of you has read his context. He doesn't have a clue what is a cookie and what is a session.
A cookie, also known as a web cookie, browser cookie, and HTTP cookie, is a text string stored by a user's web browser. (wikipedia.org)
A session is stored on the web server using the session identifier (session ID) generated as a result of the first (sometimes the first authenticated) request from the end user running a web browser. (wikipedia.org)
There are 2 different things.
Mainly to authenticate a user you have to store his login information, either in a $_SESSION or in a $_COOKIE.
the $_SESSION being server side it doesn't have to be dramatically encrypted because only your scripts will read it.
the $_COOKIE has to be always encrypted, because browsers (like Firefox with it has a ton of plugins that print out cookie in formations) can display them, encrypted in that way that the only thing that you can do is to compare his login also encrypted with that cookie to see if he is authenticated or not. Compare not decode. The best encode and easy encryption is MD5.
this doesn't mean that $_SESSION and $_COOKIE are there for authentications or stuff like that, you can do a lot more magic with them.