I know of 2 different ways to make the Magic Circle, this is just the way I learned. If you have a way you love, by all means continue! This is just a guide for anyone who does not know of it to learn at least one way and make their life a little easier!
First loop your yarn around your middle and ring finger twice
Insert your hook under the 2 loops and yarn over
Pull the yarn through and make a slip stitch to secure the loop in place
From here you would work the pattern as normal, picking up from where it say to chain 3(or more) and slip stitch to make a loop
When you are finished working your stitches in the loop, it will look like this. From here is where you begin the process of closing the loop. You pull on the tail slightly and watch to see which of the 2 strands of yarn that make up the loop move. I have noted in the picture where you are supposed to look
When you see which strand moves, you are going to pull that strand by on the side that is closest to the tail, again noted. As you see in the picture, this will shorten the other strand and will bring the loop closed
From here, you pull the tail which will make the strand you were pulling disappear.
And you are finished! As you see, no hole!
From here you would continue on your pattern, joining with a slip stitch or continuing the round. It seems complicated but once you learn it, it is easy as pie. It is a wonderful skill to know, especially if you make a lot of amigurumi or hats or anything in the round. It gives a much more clean and finished appearance.
I hope this helps and you have learned something new! Please message me or let me know if you have any questions.