They transfer heat through convection and conduction. Convection is the process where the molecules in the liquid move around due to the difference in temperature. When the molecules move around, they carry the heat with them, thus transferring heat from one part of the liquid to another. Conduction, on the other hand, is the transfer of heat through direct contact with the liquid. For instance, when a pot of water is placed on a stove, heat is directly transferred from the stove to the water, causing the water molecules to heat up and conduct heat throughout the liquid.
