Marcus,
Yes, you can use a warm to hot (no hotter than you can stand) towel to do your hot wrap. How you wrap your unit is up to you, but I wrap my shaft when I use a rag or towel. I recommend that you stretch at various angles. For example, I may stretch straight out and hold it for 30 seconds (I’ve been holding for about 5 seconds lately) and then release, kegel, and slap the thing on my leg to get blood moving around. Then I’ll do it again until I’ve met the time limit for my routine that I have set for that angle, and then I’ll move to another angle and do the same thing: stretching straight up, straight down, left and right. However, I also recommend that you consider your LOT when deciding what angle you want to stretch, regarding all the possible angles available vertically.
Click Here if you need LOT clarification.
Being a newbie, you probably want to keep your total stretching time around five minutes until you get used to it—as suggested within the newbie routine.
"Only enemies speak the truth; friends and lovers lie endlessly, caught in the web of duty". -Roland, in Stephen King's The Last Gunslinger