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You get 3 lives on easy. I highly recommend doing at least one 'farming' run on stage 1 easy - it'll help you learn the ropes and put you in a good position to buy some upgrades.
With regards to farming/generating currency, you do this by collecting the energy pickups that power your shield/weapons - but only if your shields are already full (your weapons can be powered down, however). Essentially what this means is missile spam is counterproductive while you're still powering up. But don't not use your missiles - instead use them tactically to clear waves that you wouldn't otherwise be able to.
This applies to larger ground enemies as well (your missiles can target them if the skies are clear - press 'a' by default with xbox layout when using your AtS weapon), and is more or less required in order to deal damage quickly enough to destroy the large walkers in stage 1 without upgrades (also, make sure you destroy their little buddies, as they regenerate the big guy's shield).
There are a few videos of people playing on youtube. I unfortunately do not have a capture card. My main piece of advice for you is change the hud so you can see the shield and energy power at the bottom of the screen. Then play the first mission (on easy) and focus solely on switching power between your shields and weapons.
Don't even worry about dying. Do this for about fifteen minutes or so until it is second nature. Once you understand the balance between the shields and the weapons, the game should click for you.
Once you beat the first mission and can upgrade, the game gets much easier. It is unfortunate that the initial difficulty put a lot of people off the game, but I personally like when these kinds of games are tough.
Agreed, the recent update did help it allowing you to skip cut scenes and more than 1 craft a level. But it definitely also needs the continue countdown like classic arcade games of this flavor.
It must be the shield thing I am not getting.