Temtem is one of the more ambitious Pokemon-like games to come out, especially since it comes from a much smaller team. While it does have the goal of bringing the concept of a monster collecting and battling game into more modern times with things like full online, MMO-style gameplay, it does keep many of the mechanics that we all loved about its inspiration. That includes basics like catching new Temtem, evolving them, battling, and also trading.
Trading in Temtem has many uses, as well as some hidden restrictions and secrets tied to it. Just like in a true Pokemon game, trading is basically required to complete your collection without spending dozens of hours searching for that one critter you're missing. It's quite easy and intuitive once you know how it works, but it's a little obscure to access at first. Here's a full walkthrough on how to trade in Temtem.
How to trade
Trading is done via proximity in Temtem. You don't have to be directly next to someone to trade, but you need to at least be in the same zone. Once you're loaded into an area and are ready to find a trading partner, here's what to do.
Step 1: Open your Menu.
Step 2: Select the icon of Two people to expand your menu.
Step 3: Select Interact.
Step 4: A list of all nearby Tamers will appear. Also, if you have friends, you can directly select them.
Step 5: Select the Tamer you want to trade with, then choose Trade on the right side.
Step 6: Wait for the other Tamer to accept.
Step 7: Add any Temtem, items, or Pansuns onto your side of the trade offer, and wait for your partner to do the same.
Step 8: Once you and your partner agree to the trade, select Ready.
Other trading details
As simple as trading is, Temtem doesn't let you use it to exploit the game. Every Tamer has a hidden level cap that prevents them from using a Temtem of a higher level that you get through trades, so you can't have a friend give you a max level Temtem on your first day. You can still do the trade but will have to wait until you level up enough to use that Temtem.
There is one Temtem that can evolve by being traded. This is Azuroc, which evolves into the final form Zenoreth after being traded.