I use braid with my spinning and spincast reels and do very well with all size fish - even wee bass the size of a popsicle stick.
Suggestion: a light action rod allows a decent amount of flex. I'm not talking ultralight and definitely not medium action.
The test is when I troll crankbaits and fish attack, when the rod bends way back, the hook stays put until I can reel in the fish regardless the species. Besides, light action rods allow casting light jigs/plastics a good distance because of its flex. Here's a catfish caught recently trolling:
a crappie on the same day:
and a perch:
I use Kastking 8#/2# diam braid and like the long distance strike sensitivity and hook sets. I've caught 7 lb catfish and 3 1/2 lb carp on my tackle as well as bass like this one:
and this tyke on a modified Kut Tail:
Large crappie over 11" are one of my favorites on light tackle casting different structure and depths:
...all on braid and a light action rod.
As far as drag set, it should be set to approx. 25% of the breaking strength of the line you are using or you should be able to pull line out with a bit of effort.