yes it needs to be cycled. any tank you keep should be cycled unless your not using it. i dont know about anything to breed them. for most fish its a raise in temp, drop in temp, a water change, etc.
and most characins or watever they just spawn and lay eggs everywhere. your best shot is take em out before they eat them and dont wait for them to hatch.
you can just try and get the eggs inside a breeding net instead of using a whole nother tank. but another tank is always bettter