How can I make money with liquidity?

I'm curious to know, how exactly can one make money through liquidity in the cryptocurrency and finance realm? Is it through providing liquidity to exchanges, decentralized finance (DeFi) platforms, or perhaps through other means? Are there any specific strategies or considerations I should keep in mind when looking to capitalize on liquidity opportunities? Additionally, are there any risks involved that I should be aware of before diving in? I'd appreciate a comprehensive overview that can help me navigate this potentially lucrative aspect of the industry.