The standard etchant is ferric chloride. It is sold by the bottle ( already mixed as a stock solution ) at radio Shack and other electronics suppliers as PCB etchant. It can be bought in bulk as a powder and mixed with water to make the stock solution. The stock solution needs to be diluted to use it. Usually 3:1 or 4:1 is the ratio ( water:FC).
Wash the blade and scrub it well with soap and water. Rinse with hot water and don't touch the blade part with bare hands ( wrap it in a clean paper towel). Mask off the tang if it isn't going to be etched. A wide tip Sharpie works perfect. Wherever the black is won't etch.
Soak in the FC tank ( glass or plastic tank) for 5-10 minutes, and remove the blade. It is OK to check it every few minutes to see the progress. It will be ugly....don't worry. Rinse off, and then gently scrub with 4/0 steel wool under running water. You can do additional etches as many times as desired to get the depth of "topography" desired and the color you like. When done, wash well and scrub with TSP or windex. This stops the etch, and neutralizes the FC. If you don't do this well, you will find rust spots in weeks/months/years to come. Dry the blade off and remove the Sharipe from the tang (if you did that) with acetone. Now, boil the blade in water for 1/2 hour. This sets the color a bit better, and removes any traces of FC. Dry the hot blade well and immediately oil it completely with a light penetrating oil. Let it sit on a cloth with the oil on it overnight. Wipe it clean in the morning, and continue with the knife project.
If you buy the powdered FC, it has to be mixed carefully. Here are some directions:
FC should be mixed to make a 42 Baume stock solution. You add one pound of crystals to 18 ounces of water to get this strength - one pound to one quart is close enough. Let it sit for a couple days. Dilute the working solution from this stock . Three parts water to one part stock is what I use.
If you are just making up one gallon, skip the stock solution and mix one gallon of water to a pound of FC powder. If making up a larger batch, one gallon of stock solution is easier to store than four gallons of working solution.
Mix outdoors and don't breath the fumes when it is dissolving. Wearing gloves and a face shield, is a good practice. Mix it in a stainless tub, or a drywall bucket. It gets hot when mixing, and will melt a soft plastic jug or bucket. It can be stored in a sturdy polyethylene jug once cooled down.