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The X1 provides Dynamic Stability Control (DSC) by default, and this will be enabled every time you start the car without having to touch anything at all. There are no additional lights on the instrument panel for DSC, it's just on and working in the background to try and provide the best stability and traction control it can.
If you briefly press the "DSC Off" button as you've seen, the word TRACTION appears in the instrument panel. This is actually taking you a step DOWN the safety ladder as it were, turning off DSC and enabling what BMW call DTC (Dynamic Traction Control) instead. This apparently allows more wheelspin and is actually the recommended setting for driving in snowy conditions, but not for general driving. To quote the manual, "driving stability is limited on accelerating and cornering" when DTC is selected (rather than the default DSC)
Pressing and holding the "DSC Off" button for a few seconds turns DSC off. This is probably not what you want for general driving...
In short you shouldn't need to touch the "DSC Off" button for general driving. You certainly don't need to press it every time you get in the car!
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