Things to do
1) Use a non-working bank account to which funds can be transferred easily as required.
2) Use a Debit card and a credit card. With a credit card, you can do a chargeback. With a debit card you need to rely on Paypal to save you. (But they do a good job of it)
3) Use a LONG alphanumeric password.
4) Get a gmail account specifically for paypal and not to be used under any circumstances for anything else.
5) Get the Paypal security key.
I am now doing some of the above.
I am not using a credit card. Once my existing one is paid off, I am dispensing with it entirely. I bought the paypal security key which arrived this week, and I have a new long pass and an email account that nobody knows except paypal. However, with the security key, it might no longer matter. even if someone happens to have your login and pass, without the security key (which randomises a second password every 30 seconds) they cannot touch your account.
Feeling safer now.