In order to get an access token in resource owner password credentials grant type of OAuth 2.0, you need to POST something like
https://oauth.example.com/token?grant_type=password&username=USERNAME&password=PASSWORD&client_id=CLIENT_ID
I don't like posting a username and password in plaintext (additional layer of security), what are the recommended ways to deal with it given that we will use SSL?
I was thinking of getting a nonce first from the server and then use it to hash the username and password in the POST request.