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Fold your blanket in half (hot dog style). Do this by bringing the edge of the longer side to meet the opposite edge of the other side of the blanket.
Fold the blanket again so that the shorter side of the blanket meets the middle of the blanket.
Next, Bring the opposite short edge to meet the middle of the blanket so it is facing the other side of the blanket. You can readjust where the middle is by looking at the two halves of the blanket.
Now fold the blanket where the crease is in the middle where the two halves meet.
Optional: You can fold it again so the blanket takes up even less space. To do this, fold the blanket the opposite direction then the rest of the tutorial.
Now your blanket is ready to be placed at the edge of your bed, in a drawer, or a basket!