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An "Indium Farm" (really Activated Indium, because it's the most expensive raw element in the universe) is just finding a mineral hotspot using the visor (these are different from the ones you can harvest with the terrain manipulator), setting up multiple extractors and resource depots, and then just waiting for it to fill up so you can sell. You'll need to sell to different systems because the market will immediately crash when you do this with any noticeable amount of Activated Indium.
Keep in mind, any quick method for getting units will likely drain all the fun out of the game for you. It's common that new players use those methods and then complain they have more money than they know what to do with.
If you only have one frigate, my advice is to just keep playing and wait until you have enough credits for another one. Meanwhile, frigate missions refresh, so you'll likely get one your frigate can handle soon.
Disclaimer: Frigates can be damaged while on missions. Having the fleet strength be equal to the difficulty seems to have the highest chance of damaging them (apart from having the fleet be weaker than the mission requires, obviously). It's not advisable to let them continue on the mission if they are damaged, or they could be destroyed. Going one star over will minimize the danger, and two stars essentially guarantee that no harm will come to your frigates. However, it is still a random process and it can happen.
There are also ships that have malus at start: use more fuel, less combat power than normal, etc. Obviously, avoid those at start if possible.
As they complete missions, frigates do level up to S class. Buying C class with decent attributes is the way to go, imo.
Then for frigates, buy only C-Class ones, they improve after each successful missions.