There are many ways to start seeds for transplants. Using peat pellets is a popular way and has some advantages. The peat has a naturally occurring antimicrobial property that helps control fungal diseases. The peat pellets are also easy to handle which helps with transplanting.
To get the pellets ready for planting you need to add water. Warm water is best. Package directions will tell you how much water to add. You want the pellets fully expanded, but you do not want them any wetter. You don’t want water sitting in the bottom of the tray. Too little water is better than too much.