A magic loop, also called a magic ring, magic circle, adjustable ring, or adjustable loop, is the preferred way to start crocheting in the round. It’s considered magical because the result has no hole in the middle.
However, the magic loop can be tricky to master so if you’re having a lot of trouble with it, you can start a round piece with a chain instead.
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You just made a chain stitch in step 10. This does not count as a sc in the magic loop.
If you can let go of the magic loop and everything stays intact, you’ve done it correctly. Huzzah!
Now that you have a magic loop you can safely let go of, feel free to rearrange your grip to however you normally hold yarn.
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Make it easier to find the first stitch of the magic loop later, by putting a stitch marker under the top loops of this first stitch the moment you make it.
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