There are ~16k total reachable bitcoin nodes out there, which means there are plenty of users are trusting 3rd party nodes.

https://bitnodes.io/

Having your own keys and using a wallet application that connects to someone else's node is better than keeping your coins on an exchange, but you're still relying on someone else's node to not screw you.

Compare the meager 16k nodes people trust with the 100 million who claim to own bitcoin.

https://www.wsj.com/articles/bitcoins-one-percent-controls-l...

(no paywall: https://archive.ph/73vR1#selection-4213.0-4213.97)

I have no data on this but if history is any indication, I'd wager 90% of user's wallets point to the same 100 nodes.

All of crypto looks like PayPal with extra steps.

If I'm incorrect someone please educate me on this.

Oh, I see what you mean. I own BTC but don't run a node.. so your point is that I am dependent on other people running nodes? It's a good point alright.