In a sheath that fully covers the edge and point, retained so it cannot fall out, positioned where it will not be driven into you if you fall. Check the retention every time you put it on, and confirm your local rules before carrying anything outside your own property.
It must cover the whole edge and the point, and it must hold the knife firmly enough that turning it upside down and shaking does not release it. A knife that can fall out of a sheath is a knife that will.
Check the retention each time you put the rig on. Leather stretches, snaps loosen, and friction fits wear.
Belt carry at the hip or slightly behind is standard, and it keeps the knife away from where a fall drives your body weight onto it. Avoid carrying a fixed blade anywhere across the front of your torso for the same reason.
If the sheath has a gut hook to clear, make sure it is cut for it or the hook will catch on the way out.
Knife carry rules vary by state, county and city and change frequently. We are a retailer, not a law firm, and this page is not legal advice.
Confirm what applies where you are before carrying. See the one federal statute for what is national.