Can I text via Wi-Fi (iMessage) using an IPhone 5?

I use an iPod to text, and I have a phone paid only for calling since my parents think this is a cheaper alternative. My friend offered me his iPhone 5 so I can use it for both my calling and texting. Will this work? I'm not sure if iMessage works on Wi-Fi for iPhones, but I suppose it's free. Would I be able to call as well?

IMessage does work on Wi-Fi.

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