What precautions to b taken while selling my iphone??

I'm gonna sell my iPhone4,,before wats the steps to be taken ?? i mean should i do RESET ALL in the settings,, if i do so? will all the contacts in my iphone ll b erased??

Using data deleting tools via the iOS software will NOT be enough to fully secure your iPhone. People have different perceptions on this topic, some may even argue with my point but I am a data privacy addict and have an obsession with ensuring my data is permanently deleted. My work phones contain a lot of confidential data so I have to ensure all data is properly destroyed. One UK company offers this service, (can provide names separately as I don't want this to look like an advertising message) but basically read these links:
http://www.computerworld.com/s/article/9226632/One_in_10_secondhand_hard_drives_in_U.K._contain_personal_data  link clearly states pressing the traditional delete button does not work.
http://forums.macrumors.com/archive/index.php/t-1139941.html another example of how to recover data, the software used is by the police however it can be found online and used by anyone across the world.
http://www.itpro.co.uk/mobile/19643/importance-wiping-devices-upgrading another example
People need to be more aware of data privacy because it is a growing issue!!!!!

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