Transvestism (also called transvestitism) is the practice of cross-dressing, which is wearing the clothing of the opposite sex. Transvestite refers to a person who cross-dresses; however, the word often has additional connotations.
Hirschfeld himself was not particularly happy with the term: He believed that clothing was only an outward symbol chosen on the basis of various internal psychological situations. In fact, Hirschfeld helped people to achieve the very first name changes (legal given names were and are required to be gender-specific in Germany) and performed the first reported sexual reassignment surgery. Hirschfeld's transvestites therefore were, in today's terms, not only transvestites, but people from all over the transgender spectrum.
Hirschfeld also noticed that sexual arousal was often, but not always, associated with transvestite behaviour; he also clearly distinguished between transvestism as an expression of a person's "contra-sexual" (transgender) feelings and fetishistic behaviour, even if the latter involved wearing clothes of the other sex.
Since transsexual people had and sometimes still have to "prove" that they are not "just transvestites" to get access to medical treatment, people who see themselves as transsexuals occasionally discriminate against anything they see as "transvestism" even more strongly than the public in general.
The gay and lesbian rights movement after the Stonewall riots weakened tranvestism's association with homosexuality, since more lesbians and gays became visible and most of them did not show transvestite behaviour. The extreme transvestism that is still associated with the LGBT community, which differs from most other forms of transvestism, became known as drag.
That left transvestism as transvestic fetishism, in which transvestic behavior is coupled with, and often necessary for, sexual arousal. However, in most western societies it became almost impossible for women to engage in transvestism, because more and more pieces of male clothing were permitted or even fashionable for them. Also, the distinctive transvestic behaviour of butches in the lesbian community became "politically incorrect" and therefore became rather rare (or went "underground"). All this led to the term transvestism being applied to men or male-bodied persons only, because there seemed to be no need for a word for transvestic female-bodied persons.
Today transvestism is still applied mostly to male-bodied persons. However, some researchers never stopped using the term transvestism for female-bodied persons, and recently some groups of female-bodied transvestites have started to use the term to describe themselves, although the term "drag king" is more common.
This group did - and sometimes still does - distance themselves strictly from both gay men and transsexual people, and usually also deny any fetishistic intentions. It was probably this development that led to the explicit definition of transvestic fetishism as distinctively different from transvestism.
However, when this group of people achieved public attention, most of the time not the word cross-dressing was used, but transvestism. That led, paradoxically, to yet another usage of transvestism: Today transvestism is sometimes used to describe specifically cross-dressing male-bodied, male identified, heterosexual persons. This group usually self-identifies as "cross-dressers".
Echoing the changing history of the term "transvestism", cross-dressing (but not cross-dresser) is now being used to describe the act of wearing clothing of another gender.
There are some cross-dressers who enjoy going out in public, either to special clubs or organizations or to adult night clubs that welcome the transgender community. They take great care in their choice of clothing, wigs, and makeup, sometimes spending considerable time on transforming their appearance from male to female.
The word transvestism therefore should be explained when used; most of the time using cross-dressing will avoid much potential confusion. If encountered, it is necessary to find out which particular meaning it has in the context in which it is presented. In scientific literature, cross-dressing has mostly replaced transvestism.