How to add encrypted ZFS pool on FreeBSD server

Originally published at: https://www.cyberciti.biz/faq/how-to-add-encrypted-zfs-pool-on-freebsd-server/

I recently added hard disk to my FreeBSD based server. How do I configure an encrypted ZFS pool to store data on this disk? How can I add encrypted ZFS pool on FreeBSD 11.x server?