diff --git a/README.md b/README.md
index bd70d63..e38d754 100644
--- a/README.md
+++ b/README.md
@@ -19,9 +19,70 @@ file system may not be necessary if the archive is to be used together with
 some application. If you are a developer, reading directly from the ZIP-file
 may be preferable.
 
-This repository contains the code for updating and building the archive. While
-the API is not guaranteed to be stable, it can also be used as a library for
-easy access to stories and metadata within the archive.
+This repository contains code for updating and building the archive. While the
+API is not guaranteed to be stable, it can also be used as a library for easy
+access to stories and metadata within the archive. A [Fimfiction API] key is
+however needed to stories directly from Fimfiction.
 
 [Fimfiction]: https://www.fimfiction.net
+[Fimfiction API]: https://www.fimfiction.net/developers/api/v2/docs
 [user profile]: https://www.fimfiction.net/user/116950/Fimfarchive
+
+
+# Installation
+
+There are primarily two ways to install this tool. The first is installation as
+a library for use within other projects, and the second is installation for
+development of Fimfachive. Using a [virtual environment] is recommended for
+both cases in order to avoid contaminating the rest of the Python installation.
+
+## Installation as a Library
+
+Make sure a virtual environment has been created and activated. When done,
+simply install the library directly from the `master` branch on GitHub.
+
+```bash
+python3 -m pip install git+https://github.com/JockeTF/fimfarchive.git
+```
+
+Optionally also install `lz4` to lower the memory footprint of open archives.
+
+```bash
+python3 -m pip install lz4
+```
+
+That's it! Import a class to make sure things work as expected.
+
+```python
+from fimfarchive.fetchers import FimfarchiveFetcher
+```
+
+## Installation for Development
+
+Start by creating a clone of the Fimfarchive repository.
+
+```bash
+git clone https://github.com/JockeTF/fimfarchive.git
+```
+
+Enter the cloned repository and create a virtual environment called `venv`
+within it. Make sure to activate the virtual environment before proceeding to
+install the development dependencies.
+
+```bash
+python3 -m pip install -r requirements.txt
+```
+
+Optionally also install `lz4` to lower the memory footprint of open archives.
+
+```bash
+python3 -m pip install lz4
+```
+
+All done! Run the test suite to make sure everything works as expected.
+
+```bash
+pytest
+```
+
+[virtual environment]: https://docs.python.org/3/tutorial/venv.html