Paladins are the main tanks of the game, and when geared right and with the proper stats will be awesome!
Stat Builds:
Vit/Int/Dex/remaining to Str - This build is the perfect tank with some Damage dealing capabilities. Shrugs off physical and Magical attacks.
Vit/Dex/Str/remaining to Int - The pure Damage Paladin, but weaker to magic attacks.
Gears and Crystals:
Special Sword such as Catskinner is necessary, until Catskinner is released make Int your main Damage stat and use a Magic Sword. Gear should be focuses on Damage reduction, and Hp+%. Plate Mail is the absolute Best armor to use. Avoid Kaise Pilz crystals though as the negative resistances hurt more then the Hp is helpful. Also Damage Relfection can be nice to reflect some Damage back, to obtain a great Slotted Special Equip for Paladin(Mp Consumption+100% and Damage Reflection+5%) simply do Mission quests until mission before Matadora as an Adventurer.