How do you read a scripture quote?

When quoting scripture, you say "In John 3:16 it says that 'For God so loved the world that He gave His only begotten Son that whosoever believeth in Him shall not perish but have everlasting life'." or you can say "In John Chapter 3, Verse 16 it says that 'For God so loved the world...'" To say just the numbers or to quote chapter and verse is your choice because either is correct.