Step 3: LOOK NO HANDS!
You can wrap just about anything in paracord: knife handles, water bottles, flasks, e-kits...etc. Once you wrap it, you can add a key ring, make a lanyard knot/loop, or improvise any other kind of attachment device. So now you're hands free and have some extra paracord handy!
Check out some of these fellow 'ibles for different ways to wrap some common items: