Absolutely, you need to have a domain name so that you can use your hosting package. It has come to my attention that, during the registration process you typed in the domain name and choose the "I already own this domain name" option which assumes that you have this domain name @ another registrar. Like @Traknut said "It sounds like you've done step 2" while skipping step 1. For your information, a hosting package without a domain name = null 
watex;1270363 wrote:I went to hostgator.com and bought a package and paid a fee for a total price of 1 year for a new website. (Roughly 80 dollars) 'webdomainhere.com'
Then when I logged into control panel, it said You have the option of registering this domain. Im like 'what? didn't I already type in the name of the domain when I bought the package?' It offered to register it for about 10 dollars. Whats the difference and do I need this?
Im really confused with the terms so I dont know if Im using it right. I think I paid for a hosting package for a new domain and now it's giving me the option to pay to register that domain. Do I need to do this?