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If it's not the Steam Market via the Steam Client, you can't trust your Steam Account to not get compromised eventually, losing all your steam wallet and inventory in the process.
Marketplace.tf is trustworthy as far as third party sites go - not all of them are scams, I have used it myself before. That said, I have never encountered this issue before, and it is very possible OP went to a website pretending to be marketplace.tf to phish passwords and account info.
Valve intended you to be able to "login" with third party sites, it's a feature that they themselves allow you to use for your website. Various reputable websites use it and it doesn't automatically make them a scam. You just need to be extremely careful and always make sure that when you are logging in via Steam to a third party website, they actually take you to Steam and not a fake phishing site.
https://steamcommunity.com/dev
Personally I wouldn't trust using market places outside of steam's market, that's how account theft happens...
As for your issue with not being able to log in, It's likely an issue on their website's end, it's unlikely that someone else here can help with that though.
Sorry, but we can't help you here.
https://steamcommunity.com/groups/TFmarketplace
No 3rd party website is trustworthy because they all have a potential risk that they could be abused to abuse your account. Just because a website is using the Steam API does not imply that they are trustworthy.
I've seen sites which used the Steam API that were one day easily accessible from Steam (so: with the yellow banner warning) and the next day Steam decided to block them and stamp a huge red warning banner onto the link.
There are no guarantees here and using any 3rd party website is a potential risk, plain and simple.
Please note that I'm not claiming all 3rd party websites are scams in the making, all I'm saying is that there is no way for you to know or be certain of that.
marketplace.tf literally sponsors competitive events for TF2.
Seen sites like those sponsor youtubers as well - only to have mass hijacking in the future from only that kind of site being used.
There is no guarantee of security of your account, when you login to another site with your Steam Login.
In other words people need to stop looking at your fear mongering and do their own research on this because you're just sounding ridiculous at this point with marketplace's history alongside the TF2 community.
And then we had the PSN disaster... the network was breached, millions of accounts were stolen and to add insult to injury it even became clear that internal data security was plain out non-existant.
Now this was a million dollar company. You're talking about a mere website which main motivation is to make a profit. What guarantees do you have that they weren't compromised already?
Fact of the matter is that most users consider a site safe because "nothing bad happend" but that's simply a non-argument.
I also suggest you take a closer look at the Steam forums and in particular all the topics about Steam users who ended up seeing their accounts taken over.
This is by far fear mongering, this is simply sharing a dose of common sense, giving a glimpse at the harsh reality of things.