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However, there are plenty of places that have higher spawn rates (day and night), and more difficult mobs. Just head in one direction for a few minutes. Soon enough you'll hit Corruption or the Jungle. If you're careful, you can farm coins there.
You may also want to check out the official wiki: http://terraria.gamepedia.com/Terraria_Wiki
In the event of a Blood Moon, have a 2x2 pit next to any doors outside, where enemies would approach from, of your housing, it'll prevent them from breaking in.
If you want to fight all night on the surface, go a good distance away from where your NPCs are, and build a very simple house, just blocks, no Walls, to prevent the enemies from getting at you when you need a break. A safe zone if you will. Perhaps even place a Bed in it for easy access to where you are fighting in case you die.
What pit thing?