diff --git a/crates/chain/src/tx_data_traits.rs b/crates/chain/src/tx_data_traits.rs
index 811b1ff414..0828ec9785 100644
--- a/crates/chain/src/tx_data_traits.rs
+++ b/crates/chain/src/tx_data_traits.rs
@@ -44,6 +44,30 @@ impl ForEachTxOut for Transaction {
 /// assume that transaction A is also confirmed in the best chain. This does not necessarily mean
 /// that transaction A is confirmed in block B. It could also mean transaction A is confirmed in a
 /// parent block of B.
+///
+/// ```
+/// # use crate::local_chain::LocalChain;
+/// # use crate::tx_graph::TxGraph;
+/// # use crate::BlockId;
+/// # use crate::example_utils::*;
+/// # use bitcoin::hashes::Hash;
+/// // Initialize the local chain with two blocks.
+/// let chain = LocalChain::from_blocks([(1,  Hash::hash("first".as_bytes())).into(), (2, Hash::hash("second".as_bytes()))].into_iter().collect());
+/// // Insert transaction into TxGraph with different anchor types.
+/// let tx = tx_from_hex(RAW_TX_1);
+/// let mut graph_a = TxGraph::<BlockId>::default();
+/// let _ = graph_a.insert_tx(tx.clone());
+/// let mut graph_b = TxGraph::<ConfirmationHeightAnchor>::default();
+/// let _ = graph_b.insert_tx(tx.clone());
+///
+/// // Insert different anchor types for the same transaction.
+/// // When using the BlockId as anchor, the anchor block is the
+/// // confirmation block of the transaction. Where as when using
+/// // the ConfirmationHeightAnchor, the anchor block is a bound on
+/// // the confirmation block of the transaction.
+/// graph_a.insert_anchor(tx.txid(), BlockId { height: 1, hash: Hash::hash("first".as_bytes()) });
+/// graph_a.insert_anchor(tx.txid(), ConfirmationHeightAnchor { anchor_block: BlockId { height: 2, hash: Hash::hash("second".as_bytes()) }, confirmation_height: 1 });
+/// ```
 pub trait Anchor: core::fmt::Debug + Clone + Eq + PartialOrd + Ord + core::hash::Hash {
     /// Returns the [`BlockId`] that the associated blockchain data is "anchored" in.
     fn anchor_block(&self) -> BlockId;