Here's what you need:
-(Optional) Cold Metal Blueing Agent
Now lets get started
IT'S LEGAL! U.S. Title 18, Chapter 17, Section 331: Prohibits among other things, fraudulent alteration and mutilation of coins. This statue does not, however, prohibit the mutilation of coins if done without fraudulent intent if the mutilated coins are not used fraudulently.
Step 1: Hammering and Cutting the Nickle
As you will see in the first picture, I simply just hammered one side of the nickle. This gives you a longer blade.
Then we start cutting. Get your pen and draw out your pattern, it should look something like the second picture below. Now take out your hack saw and start cutting, a few drops of oil can make the cutting process much easier. Be careful not to make the little bar hanging off of the nickle too thin, its what we are going to wrap the penny around, and we want it as strong as possible.
Once you get your nickle cut out, click on the next step to learn how to put the penny on it.
Step 2: The Penny
Once you have your Penny put it in your in vice and start closing it until it starts to bend like in picture 1.
Then get your Nickle, and put the handle that we were talking about in the bend of your penny like in picture 2, and keep and closing it and SQUEEZE as hard as you can until the penny is completely wrapped around you penny, like in picture 3. You can get a hammer and hit were to 2 sides of the penny meet, to make sure it wont fall off.
Right now your knife looks like a dented up mess, but in the next step we will clean it all up and make it beautiful and sharp!
Step 3: Grinding, Polishing, and Sharpening.
Then get a medium abrasive grinder and start grinding away the copper on your penny (that is if you are using a post 1982 penny, if you are using a pre 1982 penny, just grind it down until you cant see the face anymore), This is also a good time to clean up the blade and make it nice and smooth. Then get your polishing wheel and give you knife a mirror like finish.
Once you are done with all that its time to sharpen your knife. You can simply do this with a belt sander.
I apologies that I did not go into further detailing on how to grind, polish and sharpen you knife.
This is because there isn't much to say about it. It is very easy to do, So if you have any questions about it, just ask!
Step 4: Blueing and Finished Product!
I like to dip a Q-Tip into it and use it as a paintbrush.
And now, you have your finished product!
A cheap, cool looking, easy to make, pocket knife!
If you have any questions to be afraid to ask