Isn't the risk of buying bitcoins with paypal the same risk as buying anything else with paypal? What is considered to be the safest way to do this other than going to someone in person and making sure you get the cash in hand?
It's not the risk of
buying bitcoins with paypal - it's the risk of
selling bitcoins for paypal. Example: you sell me 1 bitcoin and I buy it by paying you $100 thru paypal. Once I receive the bitcoin from you I file a dispute on paypal. Paypal reverses the transaction and gives me back my $100. Now I have 1 Bitcoin I didn't have to start with, and my $100 in my paypal account. You on the other hand have lost 1 bitcoin and have no additional money in paypal.
Let me tell you a true story of what I've seen go wrong. If someone tries to buy Bitcoin with a Moneygram or Moneypak and the number on it is invalid then what? The buyer has no way to know with 100% certainty that this was the case, and must have faith in the seller. The seller also has no way to know with 100% certainty that the buyer didn't use an invalid card. Honestly my solution is a 1-900-BitCoin phone number. I should be able to call that number and have the cost instantly charged to my phonebill.
Another way, less stealthy, find a known location where anyone can meet to buy Bitcoins with cash in person. No meeting in random spots down dark alleys at midnight but there should be a Bitcoin coffeshop or I should be able to go to any Starbucks with cash and get Bitcoins.
Now here is the problem with Cash, with Cash you gotta worry about getting killed for it, or beaten up and robbed when it's a big enough amount. Bitcoins aren't cheap anymore, they are $100+ a coin now so now it's in the dangerous territory that drugs inhabit of being just cheap enough where people can afford it but just expensive enough that people will rob each other over it. These dangers exist primarily for the buyer not the seller imo.