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There have always been trans people, there just hasn’t been any trans visibility or acceptance. For a long time, and even still to some extent, presenting as anything other than cishet was very dangerous.
Absolutely! Though the common usage of transgender or purely trans are more modern - it was usually referred to incorrectly or derogatory as transsexual or travestite which now are being reclaimed.
I believe for stonewall it was reported as drag queens at the time, very much in line with your visibility and acceptance comment.