diff --git a/README b/README
index 75896e1..692e85e 100644
--- a/README
+++ b/README
@@ -12,6 +12,9 @@ for these in tipbot.py.
 Before starting, read the configuration parameters at the top of tipbot.py and change
 as appropriate.
 
+The tipbot will need a wallet. Any wallet can do, but it is recommended to use a separate
+wallet. This wallet should be loaded in the simplewallet the tipbot connects to.
+
 Tipbot commands are prefix with "!". Try !help to get a list of available commands.
 
 The withdrawal fee is currently set to the default network fee. If a withdraw transaction