Watercolor pencils are an excellent art medium for coloring. It is a mix between working with watercolor paints (mixing and blending colors effects, transparecy, etc) and colored pencils (texture, detailing, shading).
Watercolor pencils are specifically manufactured with a binder that dissolves in water.
Water-soluble pencils are available in a wide range of colors, as well as plain graphite pencils. Colored watercolor pencils aren't graded like graphite pencils are (from 9B, the softest, to 9H, the hardest), but their softness does vary between brands so it may be worth buying a sample pencil from various brands to see which you prefer before you buy a set. The softer a watercolor pencil is, the easier it is to put color or pigment down on a paper.
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The intensity of the wash produced depends on the amount of pencil that had been applied to paper. The more pencil 'lead', the more intense the color.
If you dampen your paper before you apply the watercolor pencil, you'll get softer, broader lines of color than if you draw on dry paper. Work carefully, and don't use pencils that are extremely sharp, so you don't damage the surface of the paper.
Another option is to wet the tip of the pencil or crayon before you use it.
I would not recomment to dip the pencil into the water as it will damage the pencil.
http://birchandbutton.com/getting-started-with-blending-watercolour-pencils/
http://www.createmixedmedia.com/make/colored-pencil-techniques
https://keetonsonline.wordpress.com/2013/05/23/using-watercolor-pencils/
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