Is being a transvestite okay?

No, being a transvestite is not okay.  A transvestite is someone who wears the clothes of the opposite sex.  This is forbidden in the Bible. Deut. 22:5, "A woman shall not wear man's clothing, nor shall a man put on a woman's clothing; for whoever does these things is an abomination to the Lord your God."  The reason it is wrong is because it obscures the distinction between male and female, blurs the pattern of the created order of male and female (Gen. 1:27), and has the potential of promoting homosexuality.  We are created as male and female and need to act according to the gender that God has ordained for us.