Those are old roots coming out of the bottom, not new ones- you can tell that by the colour and appearance. New ones will have a bright green tip - handle with great care ! But that could possibly be a new one, just poking out at the side of an old one at the right hand side. If the new roots have got to the bottom, you can start watering.
It looks as though the compost is just sphagnum - which can hold a lot of water, and you can let it get dry on top and still leave it for some days before watering again. These big bulbed plants have big bulbs to keep them going in dry spells . It will only need a lot of water when the growth is a lot bigger and the leaves start to spread out.
They can be happy in tiny pots, if watered with great care and more frequently than would be necessary in larger ones . I would have put a plant this size in say a 5 inch pot, but I prefer to do that before any growth starts so as to avoid any risk of root damage. If you do decide to pot on, ease it out after soaking, and carefully wrap the present root ball with damp sphagnum and ease into the new pot, and tuck the extra compost in - don't ram it. Air space is good ; these plants in the wild root into the rough open fibrous remains of fallen leaf stems on the "trunk" of palm trees.