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Step 1
Look for clues of the person's sexuality. This is the most defining difference between the two categories. The vast majority of cross dressers are heterosexual men, while drag queens are gay men.
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Step 2
Consider the environment. If you are at a party or a stage show watching a man performing as a woman, you are most likely in the presence of a drag queen. Most gay men who do drag do so for the sake of showmanship at special events.
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Step 3
Check out the men who are wearing women's clothing for no other reason than their own personal satisfaction (they are not putting on a show). Most cross dressers will don the items of the opposite sex for the sole purpose of satisfying an individual desire. Don't be surprised if you see them as 100% male in everyday life.
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Step 4
Evaluate the clothing, hair, makeup, etc. Most of the time, drag queens are not trying to pass as females. Their costumes are elaborate, and the hair and makeup is over the top. Feather boas, big false eyelashes and sequins galore are not uncommon.
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Step 5
Watch the person in action. If the person is impersonating a woman in an exaggerated, larger than life fashion, he is almost certainly a drag queen. Remember, most drag queens are performing the whole time they are in character.
