I wouldn’t suggest anyone buy crypto through PayPal. If the person lacks trust in all of the exchanges they are better off just staying out of it.
Buying through PayPal is buying a share of crypto that PayPal owns rather than owning it directly. Like buying a share of GLD...you own something that represents a share of physical gold rather than actually owning physical gold. You can’t sell PP crypto to anyone other than PP at the price and terms set by PP. If you buy something with it you have to do so through PP. You can’t do the above “move it to a cold wallet and bury it” thing, because you don’t own the crypto directly.
Crypto people say “not your keys not your crypto”, implying that if you don’t actually hold the private cryptographic key to your wallet you run the risk of losing it if your exchange is hacked or shuts down. PayPal takes it a step further in that you don’t even own your wallet, they do.
