There are lots of ways to wrap your headphones. Only one of them is correct. Some ways are more wrong than others—if you hate your buds, looping them tightly around your iPod like a bondage rope is the surest way to kill them fast while making it look like it was done in by natural causes. This is how you're supposed to do it.
It keeps them nice and untangly, so they don't come out looking like a ball of yarn or something that would entertain your cat for hours. You might already know the art. This is for everyone else, the uneducated masses. Feel free to share your wrapping method blasphemy in the comments, though. [Ten Reasons Why via Daring Fireball]