Which method of heat transfer takes place when particles of matter move from one place to another in a liquid?

The answer is Convection.

Explanation:

When a liquid or a gas increases its temperature, it tends to decrease its density, causing the hottest parts of the fluid to rise to the colder parts, generating a continuous circulation of fluid; that is, heat is transmitted to cold areas. This type of heat transfer is known as convection.

Heat can be transferred from one place to another by three methods: conduction in solids, convection of fluids (liquids or gases), and radiation through anything that will allow radiation to pass.