I’m wondering if I can use the beatstep midi to create beats with audacity. Is it possible, or will I have to download something like abelton live or logic x?
Audacity does not currently support recording MIDI, only audio.
As you are on Windows, you could try it with Reaper (an inexpensive DAW with an unrestricted 30 day free trial), or the free open source MIDI programs: Aria, or MuseScore. There is also SEQ24 but that does not appear to have been updated since 2010.