transferCandies are used to power up your Pokémon’s CP and to evolve Pokémon into stronger, more advanced creatures. You can get Candies by catching Pokémon, by transferring Pokémon to Professor Willow (your in-game guide who helps you learn how to catch Pokémon), or by hatching Pokémon from an egg. Candies are specific to the Pokémon you receive them from, but evolved forms of Pokémon take their unevolved-forms’ Candies.
For example, Pikachu Candies can only be used to power up and evolve Pikachu, but Pidgey Candies can be used to power up and evolve Pidgey, Pidgeotto, and Pidgeot.
To transfer a Pokémon to Professor Willow, tap the Pokémon you want to trade, tap the three-line icon in the lower right corner, and tap Transfer. You will lose this Pokémon forever (so you should try to transfer Pokémon with lower CP), but you will get one Candy.

From this menu, you can also Favorite a Pokémon. Favorite Pokémon cannot be transferred until they are un-favorited (this prevents you from accidentally transferring a Pokémon). 

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