Start with a square piece of paper (it can be any size your basket will just be larger or smaller depending.)
Score it in thirds in both directions. Fold along your scoring lines.
Now score a diagonal at each corner and fold along these lines as well. It should look something like this when you are done.
Then you will pull up all 4 corners to the middle to create the basket. I call it a basket I don't know what else it could be called.
Now before you attach the corners in the middle you will want to decorate it. Here is one example that I did with squares of scrapbook paper. Just really easy and simple. You could go all out though. Whatever you decide to do, attach it first before tying off the top.
To attach the corners in the middle first punch a hole in each corner.
Then bring two sides together and tie them with a piece of ribbon.
Bring up the next side and attach it with a piece of ribbon. Continue working your way around repeating this step. You will use 4 pieces of ribbon. I tied mine in knots but you could use longer pieces and tie them in bows or curling ribbon would look cute.
The finished product will look like this.
Here are the ones I made. This is the scrapbook paper embellishment.