I have had success both germinating in the pit as well as separated from it, but agree the pit protects the seed. I cold stratified on a moist paper towel in a baggie in the refrigerator; seeds start to germinate in a few months. The root tip emerges from the pointed end. If you plant directly outside, you have to worry about rodents finding your seeds over the winter. Pots in a wire cage would be a good solution.
Good luck. My first seed raised peach is bearing its first crop this year and they are quite good.