It's time to hand off your old iPhone to its new owner, but you definitely want to scrub it clean of all your data beforehand. Simple enough: in the Settings app, tap General, then scroll down to Reset and tap it. The option to 'Erase All Content and Settings' is the one you want; it will remove any trace of personalization and all your installed apps, returning your phone to factory-fresh condition.
Depending on which iOS device you're resetting, the process may take quite a while (older iPod touch and iPhones pre-3GS don't support hardware encryption, so they actually have to wipe all the onboard memory byte by byte). Be sure you're plugg