One knows he exists spontaneously. He does not do anything to know himself. All the three states appear and disappear spontaneously. In waking or dream one sees, hears, smells, tastes feels but he is unaware of the fact that he and his experience of the world exists within waking or dream, and he is perceives the world within the waking or dream.
However, he is unaware of the fact that, from where the waking or dream has appeared and where it disappears and what sustains the waking or dream experiences.
Only when a serious seeker tries to investigate the facts about his own existence he becomes aware the three states, which appear and disappear are unreal in its nature. In addition, the waking entity on which he tries to view and judge the worldview itself is false. Therefore, the seeking mind realizes fact that, the soul or consciousness or spirit is in spontaneous ignorance within the spontaneous illusion and experiences the illusion as reality.
The mind is formed spontaneously is lost in its self-forgetfulness of its true nature and experiences the illusion as reality, thus one sticks to the idea of birth, life and death as reality. When one accepts the birth, life and death as reality then he becomes unaware of the fact that the birth, life and death are reality within the illusion. Thus, the physical based is formed and one bases himself on the physical base and views, and judges and concludes everything on the physical base (ego). Therefore, one remains ignorant of the true self, and thinks whatever seen, known, believed and experienced as a person within the waking experience as reality. Thus, there is a need to indulge in deeper inquiry, analysis and reasoning to know what is truth and what is untruth.