This question can best be addressed by your DSO. Generally, there are very strict conditions about employment on a F1 and I think you would not be able to do so.
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While it is perfectly legal for F1 visa holders to open a PayPal account to say, pay for eBay purchases and the like, it is not legal under F-1 visa terms to conduct a business and get paid for one's work or services via Paypal. Doing so will put you in violation of the terms of your F-1 visa.
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No prohibition on opening a paypal account, but employment on F-1 is typically not permitted except for within CPT/OPT parameters. Your school's DSO should be able to give you some guidance on this.
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