You're not doing anything wrong. I've been buying and selling on ebay for some time now (though not a lot), and went through what you're now going through. I didn't like giving all that info, and didn't all at once. I started out just buying and using a credit card with a very low limit. When I did eventually start selling, a bank account was required. Since I have more then one bank account, I used one that always has a pretty low balance.
I've never had any problems yet, but I know things can, and do, go wrong.
One thing to be aware of is spoofing, there are some very authentic-looking spoofs for both ebay and PayPal.