i want to crochet around the outside of my washcloths. how do i put the "holes" around the edge to put the cr?

I have done this around receiving blankets using flannel and fleece though you could certainly use any other material too. I purchased an Edgerydoo and that works pretty well, depending on material. Some fleece closes up too soon which is not the fault of the tool but the material. The tool is basically as the first responder said - a sharp point similar to an awl or an ice pick really or even a sharp embroidery needle. Another thing I've used is the skip-a-stitch blade which is used with your own 45mm rotary cutter (not included in sale). There are three different blades which are meant to be used for different materials.

Both of these work best if your fabric is cut well - in other words, a proper square or rectangle - so your holes are placed at the same distance from the edge. I've done some where I am following a line or pattern in the fabric and from one end to the other I am a half inch difference from the edge.

You are not telling us what size yarn and hook you are using. I tend to use smaller hooks, and finer yarn, since I like the effect I get. So I just push the crochet hook through the cloth and continue! It's very easy that way. If you are using a larger or a blunt hook which will not go through the fabric, then you are going to have a harder time of it. But you might be able to do a single crochet around the edge with a fine yarn, and then switch to the thicker one. You can always work into the stitches produced by the first row of crochet stitches. But you can usually get a hook through almost any fabric... try it and you will see.

If you make holes, they will fray as you wash them. A better way to enable you to crochet around the edges would be to take a large eyed needle, a medium weight yarn or thread and then do a button hole stitch around the whole cloth. You could then crochet and edge through the horizontal part of the stitch without making "holes" in the cloth. ( if you tried to do this with a large yarn or thread then each stitch WOULD make a hole in your cloth and with each wash WILL fray and eventually fall apart.

I do a blanket stitch around the outside, each stitch about 1/4" apart if using crochet thread, then crochet into the loops of the blanket stitch.

I have done this around receiving blankets. I just used a small crochet hook and thin cotton yarn/string, the kind used for doilies.

I have a friend that does this. She uses an awl to make the holes. In case you're not familiar with this tool, it is about 6" long and has a long slender shaft with a point on the end. You can find it at almost any hardware store.