diff --git a/.env.example b/.env.example
new file mode 100644
index 0000000..289b450
--- /dev/null
+++ b/.env.example
@@ -0,0 +1,7 @@
+# Bitcoin RPC credentials
+BITCOIN_RPC_URL="http://localhost:8332"
+BITCOIN_RPC_USER="your-rpc-username"
+BITCOIN_RPC_PASS="your-rpc-password"
+
+# Starknet provider configuration
+STARKNET_PROVIDER_URL="your-starknet-provider-url"
\ No newline at end of file
diff --git a/README.md b/README.md
index 2c215c8..3fe5807 100644
--- a/README.md
+++ b/README.md
@@ -16,6 +16,18 @@ npm install bitcoin-on-starknet
 
 ## Usage
 
+Before using the library, make sure to set up your environment variables in a `.env` file:
+
+```bash
+# Bitcoin RPC credentials
+BITCOIN_RPC_URL="http://localhost:8332"
+BITCOIN_RPC_USER="your-rpc-username"
+BITCOIN_RPC_PASS="your-rpc-password"
+
+# Starknet provider configuration
+STARKNET_PROVIDER_URL="your-starknet-provider-url"
+```
+
 ## Testing
 
 ```bash
@@ -23,6 +35,7 @@ bun run test
 ```
 
 ## Building
+
 ```bash
-bun run build 
+bun run build
 ```
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