Yeah, punching rocks gets you no resources. Also, you need a an iron axe or better to mine gold or diamond. Using stone or wood pickaxes on them will get you nothing. You might also need a stone pickaxe to get iron, I'm not sure though.
Dig a two tile moat around your base. Cut a hole in your ceiling so you can see the day/night cycle. Build a bridge to get out in the morning and destroy the bridge and seal your door at night. In the morning destroy the bottom tile of your door and punch the monsters. Wait for the sun to kill skeletons.
Later you can make your moat deep enough that everything dies when it falls in. At that point you've won the game. Don't bother filling it with water because then the monsters will live and it's harder to collect all the loot. Filling it with lava is okay, just don't mine into it.