Sphagnum moss okay for DWC?

My boyfriend and I are starting a new seed in DWC and before we start it we just want to make sure that using peat moss and coco fiber will work. We are starting the seeding in one of those Jiffy expanding seed starters which has the peat moss. And we mixed coco fiber with peat moss, is this an okay choice? Couldn't find any perlite that wasn't either Miracle gro or half the size of my boyfriend lol. Also, how high should I have the water level foor the seedling, like how far up the net pot should it reach before drowing it or anything? Any tips for this hydro beginner would be much appreciated!

Please any help!!! And an update, I got rid of the Sphagnum moss, well actually we decided to use it for the snakes tarium lol. We really need help cause we're setting up our system now!