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Read
http://terraria.gamepedia.com/House
You will need to kill at least one slime in order to get the gel material required to make torches (necessary to illuminate your home so the Guide NPC can move in).
At night, put a block (wood or dirt or whatever) on either side of the closed door to prevent monsters from opening the door and getting inside.
Make a wooden sword because they're better and easier to use than the horrible copper shortsword you start with. Make wood armor and wear it.
Loot chests located on the surface or found just inside cave entrances and tunnels (sometimes they contain a weapon, potions, or even an accessory).
When you're out and about (away from your house) and suddenly find yourself overwhelmed by monsters, place blocks around your character (between you and the monsters) for quick protection. Basically box yourself in. If you want, remove two blocks and try to swing your sword through the gap to hit the monsters.
Watch Ymrir's Terraria "first night" videos on Youtube for ideas on how to handle monsters on your first night. I'm not expecting you to be able to kill bosses right away like he does, but just watch what he does to survive, gear up, and fight monsters.
https://www.youtube.com/results?search_query=ymir+terraria+first+night
You should probably also take a look at some of the guides written by other Terraria players in the Steam Terraria Guides section.
http://steamcommunity.com/app/105600/guides/?browsefilter=trend&requiredtags[]=Gameplay%20Basics
Good luck! You'll get the hang of it! And eventually you'll develop your own style and preferred methods of building, gearing up, and fighting.
I'm reasonably certain that reducing character difficulty will not decrease the damage output of any given monster, nor will it decrease spawn rate. Aside from that, there isn't any difficulty to be decreased.
If you're in multiplayer, sure, it's easy because you've got yourself and at least one more guy. I don't find it to be too difficult, mind you, but "too difficult" varies from person to person. I still say that OP should get over the inherent difficulty of starting a new character, though.
If you're planning on building a large structure to function as your town, you may want to hold off on that until you get your first few NPCs. Having enough in an area (I think the number is three) will cause mobs to stop spawning in the area.
As per your percieved difficulty, it becomes more practical to deal with once you get better equipment and higher health. In fact, it starts becoming pretty fun when things get violent, if your up to the task.
But be warned: once you hit hardmode (which you really will want to eventually) things will suddenly become much harder. On the flip side, the equipment you can get also becomes stronger too.
But again, on the other hand, you can craft equipment that's bad ass enough to handle the suddenly dangerous enemies.
I won't lie. it's a hell of a lot harder than pre-hardmode ever was, and bosses will be frustrating with the equipment that you get legitmately before killing them. But the thing is... hardmode is really an expansion to the content the game has. One day you will have a handle on pre-hardmode, be a master of dealing its mobs, and bored of how simple it is. That's when you'll be prepared for a new challenge: hardmode.
All the new things you get in hardmode is totally worth the pain. By the time you reach endgame and decide to start over just for the heck of it, you'll laugh at the cute little toys you start the game off with.
Start off by making a small shack and slowly gather materails to make better gear.
But... frost moon.