appears you created a packet. hold it in front of them and let them touch it to let them know the coin is still there. you make one turn and with your back to the audience, you slip out the coin. you then pick up the handkerchief and put the coin down in the same movement.
you then cover the paper with the handkerchief and give this to the person. say some magic word, lift the handkerchief and let the person open the folded piece of paper to discover that the coin that was placed in there disappeared. after you ask them where is the coin, you show it and hand 