There are many ways to work with encaustic. I do hot and cold processes. Below are the tools I use to create crayons for cold wax applications as well as other tools used in the hot wax application processes.
An electric frypan serves as a palette. Notice the grill thermometer. It is important to keep the temperature below 200 degrees Fahrenheit because wax will discolor at higher temperatures. In fact, 150 degrees Fahrenheit is sufficient
This is a closer look at the reostat I use. The hot pens and wood burning tools that are used in the process do not have temperature controls on them. It is very important to keep the temperatures on the cool side of 200 degrees Fahrenheit. One of the most important of which is the possibility of toxic fumes from superheated wax. The reostat can be set so that the hot pen will not overheat.
GriddlePalette. An electric pancake griddle can also serve as a palette. I use it to heat boards for painting and also to make mono prints. Keep the temperature down to 150 degrees Fahrenheit for mono prints. Do not go over 200 degrees Fahrenheit for heating and painting on wood.
Put wax into a small metal container and place on the fry pan or griddle. Once the wax is melted add pigments to create a paste. The more pigment, the stronger and more opaque the color. Less pigment and more wax creates a transparent color. When the wax is somewhat cooled so that it can be touched pour it out onto a metal surface (an old cookie sheet will work), and then roll it into crayon shapes. These can be used as crayons or broken up and remelted for liquid (hot) wax painting. I have a metal surface table that I built which serves the purpose of rolling colors. I mounted 40 watt light bulbs beneath it and when turned on the table gets hot enough to work wax crayons like pastels. It will also allow me to paint with liquid wax.