Welcome to GT and I am glad you are finding the beginning of your journey to be enjoyable. You are not far from playing your favorite blue grass songs at all; as at their core many of them are simple chord progressions that beginners can dive into right away. It is when you get to all the crazy licks in between that you need some practice (as I do for sure!)

None the less, in regards to your frets question; make sure you are playing at the bottom of the fret. I mean this referring to the fret as the square on the neck of the guitar (i.e the 1st fret, 2nd fret, etc.) What is a little contradictory is that we refer to where we place our fingers on the guitar to play notes as frets, and the actual metal pieces where our fingers play between are also called frets. This does make things a little confusing at times.

The best place to achieve the best sounding note is to play slightly above the bottom fret marker of the fret you are playing. If you watch slide guitar players, that is where they play with the slide to get the best sound.

Hopefully this makes sense. It will be pretty apparent where the best place is to play as it will feel more natural and if you play too close to the top of the fret, you will get a lot of fret noise. Best of luck and keep the questions coming!
;)