I don't want to worry anyone, but PayPal is not a bank or govt regulated or govt guaranteed. I'm sure it is pretty safe. I wouldn't put a whole lot of money in it.

And if I engaged in some big sales to strangers, I wouldn't want a lot in it (or in my bank account that is linked to my PayPal account). If someone screams fraud or does a credit card charge back against your PayPal account, it initially comes out of PayPal's pocket, and PayPal has the right (terms of service agreement) to seize from your PayPal and bank accounts. All kinds of PayPal horror stories on the internet.

Robert