Whilst most colored pencils are wax based, some brands use an oil based lead, like Faber Castell's Polychromos. These pencils are very soft to apply color so will cover every fibre of the paper with their bright hues, but they are also very expensive and should only be considered if you are looking to take your art to the highest level.
Crayon Tinting. Using crayons for tinting embroidery is the most common technique. It's easy to learn and most people have at least a few crayons around. Crayons produce a bold color, but you can also work more gently with them, resulting in a lighter tint. Just like coloring on paper with crayons, varying the amount of pressure and layering your coloring creates some very cool shading. That shading gives your embroidery texture and dimension, and it's fun to use with modern or vintage designs.