Drill eight evenly spaced ¼-inch holes in the bottom of the bucket for drainage. Drill 10 evenly-spaced holes in the lid of the bucket and eight holes around the rim of the bucket for air holes. These holes should always be above the line of the worms' soil.
Fill the bucket halfway with peat moss.
Soak the peat moss until it is as damp as a wrung-out sponge. Place the bucket in a plastic tub such as a cat litter box to act as a drip tray.
Add 2 pounds of red worms to the bucket. Cover the bucket with a lid and store the bucket, drip tub and lid in a dark place such as under your kitchen sink. Worms are phototropic, which means they do not like sunlight.
Add 1/2 cup of kitchen scraps daily. Adjust the kitchen scraps until you feed worms just enough daily for them to eat. Bury your scraps in a different location each day.