Can you cut sheet metal with a Dremel? Yes, you can use a Dremel metal cut-off wheel to cut most metals. Refer to the packaging of the specific Dremel cut-off wheel to see its capabilities.
Are there ways to sharpen this specialty cutting tool ... You can use power tools like a Dremel or an angle grinder with a metal sharpener attached, or you can hone it by hand with a whetstone.
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