Turn My iPhone 4 into an iPod Touch?

Hi,
I'm sorry if this question has been asked (seems like it would be a fairly common question). I've used the search feature, as well as Google, but most of the threads/answers I've found seem to be "one-off" type of questions that don't really address the general issue.
Anyway, I had an iPhone 4. I just bought a new iPhone 5s. I simply want to turn the iPhone 4 into an iPod touch so that I can continue to use it to listen to music and podcasts while I'm exercising (seems like a better option than to risk dropping my brand new iPhone). What do I need to do this? Do I need to remove the SIM card? If so, how do I do this?
Thanks.

Hi All,
I too have a question on this. I have upgraded to the 5s and want to give my iphone 4 to my daughter to use as an ipod touch with no sim. I'm having difficulty setting up imessage and facetime on the device? I've followed a few posts an have erased all contents and all settings, put the old sim in (it is still active with network), set the phone up using itunes account with sim in with no success.... Waiting for activation...... is the status
You could/can use imessage and facetime on my old ipod touch so am I right in thinking that you can also do this with the iphone 4 with no sim?
If so how..............

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