Liquidity refers to the ability of an asset to be converted into cash and its liquidity. Its marketability at stable, transparent rates. Liquidity indicates that there will always be buyers and sellers of an asset with a strong supply. In the absence of a buyer for an asset, and if the owner wishes to sell it, it is not liquid.
Profitability is not the same as liquidity. As an example, publicly-traded company shares are liquid because they can be sold quickly on a stock exchange, even if their value has declined. Consequently, someone will always be willing to buy them. When making an investment, it is crucial to evaluate the liquidity of the asset.