diff --git a/README.md b/README.md
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--- a/README.md
+++ b/README.md
@@ -1,2 +1,30 @@
 # joinmarket-clientserver
 Joinmarket refactored to separate client and backend operations
+
+Use `virtualenv` to manage dependencies, e.g. follow this workflow:
+
+    git clone https://github.com/AdamISZ/joinmarket-clientserver
+    cd joinmarket-clientserver
+    virtualenv .
+    source bin/activate
+    
+Next, you can install in 3 different modes:
+
+1. For the "backend", a daemon, install:
+
+    `python setup.py --backend install`
+
+ Then, you can run the daemon with `python joinmarketd.py <port number>`
+ 
+2. For the client code, using joinmarket's own bitcoin library on the command line:
+ 
+    `python setup.py --client-bitcoin install`
+
+ Then, once the daemon is up, you can run sendpayment (e.g. against regtest) with
+ exactly the same parameters as for normal Joinmarket, refer to the main joinmarket
+ repo for details, with one addition: use the flag `-p` to specify the daemon port.
+
+3. For the client code, using another bitcoin backend library (currently only Electrum
+supported, see https://github.com/AdamISZ/electrum-joinmarket-plugin for details):
+
+    `python setup.py --client-only install`