$ chmod +x ~/src/electrum/server/server.py
$ ln -s ~/src/electrum/server/server.py ~/bin/electrum-server
-### Step 3. Download Bitcoind
+### Step 3. Download bitcoind
Older versions of Electrum used to require a patched version of bitcoind.
This is not the case anymore since bitcoind supports the 'txindex' option.
-We currently recommend bitcoind 0.8.5 stable.
+We currently recommend bitcoind 0.8.5 stable.
### Step 4. Configure and start bitcoind
daemon=1
txindex=1
-Restart `bitcoind`:
+
+If you have an existing installation of bitcoind and have not previously
+set txindex=1 you need to reindex the blockchain by running
+
+ $ bitcoind -reindex
+
+If you have a fresh copy of bitcoind start `bitcoind`:
$ bitcoind