1 files changed, 12 insertions, 4 deletions
diff --git a/README.md b/README.md
index c83c2d5..b322f35 100644
--- a/README.md
+++ b/README.md
@@ -85,18 +85,26 @@ dborg version
 
 ## Configuration
 
-Set your API key:
+### Initial Setup
+
+Run the initialization command to set up your API key:
 
 ```bash
-export DBORG_API_KEY=your_api_key_here
+dborg init
 ```
 
-Or pass it with each command:
+This will prompt you to enter your API key and save it to `~/.config/dborg/config.json`.
+
+### Alternative Configuration Methods
+
+You can also set your API key via environment variable:
 
 ```bash
-dborg --api-key YOUR_KEY [command]
+export DBORG_API_KEY=your_api_key_here
 ```
 
+**Note:** Environment variables take precedence over the config file.
+
 ## Commands
 
 ### NPD - Search NPD breach data