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use nylon stockings, cheese cloth, and fine mesh bags. They'll all work fine. Your water will get a yellowish tinge to it too. Hang the bag where there is direct current. Give it few days and check values of water to see if you need to add more peat or take out some. Keep checking values so there aren't any unexpected crashes or spikes in parameters. john
I use a large mesh bag that covers the bottom of the water bin. The bag sits on an old undergravel filter plate that pumps water through the bag. I use a couple of rocks to hold the bag down for the first few days.
I have a small breeding tank with a UGF and I mixed some peat granules through the gravel when I set up the tank. Water is fairly yellow but it's been a very productive tank recently.
In my 4ft tank I used to have the stocking filled with peat in the wet dry filter in the last basket before water returned to the tank.
Why use peat granules? Not exactly good value for money. Moss peat from the garden centre is much cheaper. In my breeding tanks I just stick some in the box filters or in an old nylon stocking . In my 'show'tank in the living room this wouldn't look to nice so I put it in the external filter and change the peat when exhausted. Ideally you could put it into a vat and aerate the water. Unfortunately I have space restraints and so it is not an option for me.
I would be careful puuting granules in with the gravel. The granules will eventually start to decompose.
The stuff I'm using is the Sera brand peat granules. It seems to do a really good job and last for quite a while. I have thought about how I'd change it for new stuff but figure a good gravel vac would do the trick.
I also have a bucket, aerator and peat filled stocking going at the moment for water changes on small tanks.