There are problems with this setup, though. For instance, the virtual home button covers key parts of the user interface in certain apps, like Safari. And if it's too close to the bottom of the screen, the iPhone automatically moves the dot to the top-right corner.
Now you should have a white dot that you can move anywhere on your screen. We need to put it where the home button used to be, so you'll need to clear the docked icons on the bottom.
You can turn on Assistive Touch in Settings > General > Accessibility > Assistive Touch. (Scroll down.) Assistive Touch puts a white dot on your screen that gives you quick access to common features. People have used it in the past when their iPhones had broken home buttons.
Let's create a software home button. The workaround uses a feature originally intended for people with disabilities called Assistive Touch.
More information about iPhone accessibility features from Apple can be found here.