*Please note: there are many different ways of doing a magic ring. This is just one of them, and my preferred method. :)
Begin with a slip stitch and a crochet hook that matches the size used in your pattern.
Chain 4.
slip stitch into the first of the chain stitches that you made. (ring made)
from here, you can chain and begin.... Most of my hats continue in this manner:
chain 3.
11 dc in ring
if you make sure that you dc over the tail that you had at the beginning...
when you pull on it, your hole disappears! Hooray!