Help for a noob... When is the right time to put my sprout into my system?

I use stealthyhydro.com's system. I have only one seed so far that's sprouted out of the peat pellet. It just sprouted today(just the two little leaves). When do I place the net cup and peat pellet into the system touching the water. I am currently running the bubbler to keep the water nice and carbonated. I have the sprout out of the water in a moist peat pellet under the light. When do I put it in the system. I am so afraid to drown because I sadly drowned four seeds already $28 down the drain! I have foam collars on the way and once the stem is big enough I'm gonna transfer to that.

I'd like to add the roots are now poking out of the peat pellet

Dont transplant it until you see the roots starting too sprout out of the sides or the bottom of the peat pellet. Once you see that tear off the netting and gently clear off the roots. Be very careful not to rip tear or hurt the roots in any way. May I add don't wait too long after you see the roots popping through the netting because once removing it makes it more difficult not to break them.

Ok thanks I will transfer to hydroton. Until I get the collars

i used to remove them from the peatpellets also, but found leaving it alone was better. my worry was putting dirt in aero but it was not an issue

Ok well I just transfered to the clay pellets it was just one monster root. But it's standing tall I figured it would center itself a little but it's not too off center right now