diff --git a/README.md b/README.md
index 812282a..8782088 100644
--- a/README.md
+++ b/README.md
@@ -13,3 +13,38 @@ The latest version with token swap smart contract and token transfer with the fo
 89d96501b9fcdd3c91c8900e1fb3dd5a8d8684c1
 Docker-compatibility branch is needed right now because Docker image made for flo-token-tracking required some changes which have been made in that branch. 
 
+
+## How to start the system 
+
+1. Create a virtual environment with python3.7 and activate it 
+   ```python3.7 -m venv py3.7 
+   source py3.7/bin/activate```
+2. Install python packages required for the virtual environment from `pip install -r requirements.txt` 
+3. Setup config files with the following information  
+   For testnet 
+   ```
+   # config.ini
+   [DEFAULT]
+    NET = testnet
+    FLO_CLI_PATH = /usr/local/bin/flo-cli
+    START_BLOCK = 740400
+    
+    # config.py
+    committeeAddressList = ['oVwmQnQGtXjRpP7dxJeiRGd5azCrJiB6Ka']
+    sseAPI_url = 'https://ranchimallflo-testnet.duckdns.org/'
+    ```
+    
+   For mainnet 
+   ```
+   # config.ini
+   [DEFAULT]
+    NET = mainnet
+    FLO_CLI_PATH = /usr/local/bin/flo-cli
+    START_BLOCK = 3387900
+    
+    # config.py
+    committeeAddressList = ['FRwwCqbP7DN4z5guffzzhCSgpD8Q33hUG8']
+    sseAPI_url = 'https://ranchimallflo.duckdns.org/'
+    ```
+    
+4. If running for the first time, run  `python tracktokens-smartcontracts.py --reset` otherwise run `python3 tracktokens-smartcontracts.py`