The correct way is to hold it by the handle ;-)
you read my mind. of course, unless you want to throw it at the person.
but then, my knife is a meat cleaver. when folks see a knife, they might not be as worry. however, a meat cleaver just touches the primal fear in most folks. being trying to set up an aikido meat cleaver gang, similar to the Axe gang (without the cool music and dancing).