diff --git a/lib/scaffold/start.js b/lib/scaffold/start.js
index f2ee95a8..e052ca11 100644
--- a/lib/scaffold/start.js
+++ b/lib/scaffold/start.js
@@ -10,6 +10,48 @@ var shuttingDown = false;
 
 log.debug = function() {};
 
+/**
+ * Checks for configuration options from version 2. This includes an "address" and
+ * "db" service, or having "datadir" at the root of the config.
+ */
+function checkConfigVersion2(fullConfig) {
+  var datadirUndefined = _.isUndefined(fullConfig.datadir);
+  var addressDefined = (fullConfig.services.indexOf('address') >= 0);
+  var dbDefined = (fullConfig.services.indexOf('db') >= 0);
+
+  if (!datadirUndefined || addressDefined || dbDefined) {
+
+    console.warn('\nConfiguration file is not compatible with this version. \n' +
+                 'A reindex for bitcoind is necessary for this upgrade with bitcoin.conf option "reindex=1". \n' +
+                 'There are changes necessary in both bitcoin.conf and bitcore-node.json.' +
+                 'To upgrade please see the details below and documentation at: \n' +
+                 'https://github.com/bitpay/bitcore-node/blob/bitcoind/docs/upgrade.md \n');
+
+    if (!datadirUndefined) {
+      console.warn('Please remove "datadir" and add it to the config at ' + fullConfig.path + ' with:');
+      var missingConfig = {
+        servicesConfig: {
+          bitcoind: {
+            spawn: {
+              datadir: fullConfig.datadir,
+              exec: path.resolve(__dirname, '../../bin/bitcoind')
+            }
+          }
+        }
+      };
+      console.warn(JSON.stringify(missingConfig, null, 2) + '\n');
+    }
+
+    if (addressDefined || dbDefined) {
+      console.warn('Please remove "address" and/or "db" from "services" in: ' + fullConfig.path + '\n');
+    }
+
+    return true;
+  }
+
+  return false;
+}
+
 /**
  * This function will instantiate and start a Node, requiring the necessary service
  * modules, and registering event handlers.
@@ -37,12 +79,8 @@ function start(options) {
 
   fullConfig.path = path.resolve(options.path, './bitcore-node.json');
 
-  if (fullConfig.datadir) {
-    throw new TypeError(
-      'Configuration file (' + fullConfig.path + ') is not compatible with this version.' +
-        ' Please see https://github.com/bitpay/bitcore-node/blob/bitcoind/docs/upgrade.md' +
-        ' for upgrade details.'
-    );
+  if (checkConfigVersion2(fullConfig)) {
+    process.exit(1);
   }
 
   fullConfig.services = start.setupServices(require, servicesPath, options.config);
@@ -215,3 +253,4 @@ module.exports.registerExitHandlers = registerExitHandlers;
 module.exports.exitHandler = exitHandler;
 module.exports.setupServices = setupServices;
 module.exports.cleanShutdown = cleanShutdown;
+module.exports.checkConfigVersion2 = checkConfigVersion2;
diff --git a/test/scaffold/start.unit.js b/test/scaffold/start.unit.js
index 38d14feb..efc06299 100644
--- a/test/scaffold/start.unit.js
+++ b/test/scaffold/start.unit.js
@@ -8,6 +8,35 @@ var proxyquire = require('proxyquire');
 var start = require('../../lib/scaffold/start');
 
 describe('#start', function() {
+  describe('#checkConfigVersion2', function() {
+    var sandbox = sinon.sandbox.create();
+    beforeEach(function() {
+      sandbox.stub(console, 'warn');
+    });
+    afterEach(function() {
+      sandbox.restore();
+    });
+    it('will give true with "datadir" at root', function() {
+      var checkConfigVersion2 = proxyquire('../../lib/scaffold/start', {}).checkConfigVersion2;
+      var v2 = checkConfigVersion2({datadir: '/home/user/.bitcore/data', services: []});
+      v2.should.equal(true);
+    });
+    it('will give true with "address" service enabled', function() {
+      var checkConfigVersion2 = proxyquire('../../lib/scaffold/start', {}).checkConfigVersion2;
+      var v2 = checkConfigVersion2({services: ['address']});
+      v2.should.equal(true);
+    });
+    it('will give true with "db" service enabled', function() {
+      var checkConfigVersion2 = proxyquire('../../lib/scaffold/start', {}).checkConfigVersion2;
+      var v2 = checkConfigVersion2({services: ['db']});
+      v2.should.equal(true);
+    });
+    it('will give false without "datadir" at root and "address", "db" services disabled', function() {
+      var checkConfigVersion2 = proxyquire('../../lib/scaffold/start', {}).checkConfigVersion2;
+      var v2 = checkConfigVersion2({services: []});
+      v2.should.equal(false);
+    });
+  });
   describe('#setupServices', function() {
     var cwd = process.cwd();
     var setupServices = proxyquire('../../lib/scaffold/start', {}).setupServices;