Liquidity only eliminates the type of risk that is associated with liquidity. Having less liquidity risk does not in any way mean you're more likely to lose mon

Liquidity only eliminates the type of risk that is associated with liquidity. Having less liquidity risk does not in any way mean you're more likely to lose money in general. Less liquidity means there's a larger bid-ask spread: if you're in a rush to either buy or sell, there's a chance you'll pay a premium for a quick trade. If you're not in a rush, you probably won't pay this premium at all.