The Gunners face the Reds tomorrow at Anfield.
Arteta said: "It is a test.
"It is a fascinating stadium to play football. You have to be at your best and raise your level to the maximum standards emotionally, physically, technically and tactically because if you don't you will get exposed.
"To go to Anfield is always a test. But again if you are able to do that as well there are not that many grounds as good to feel that you are a proper footballer."
On Liverpool, the manager also said: "It is difficult to judge just on the season because of what they have done in recent years.
"Jurgen [Klopp] and his staff have managed to bring the club to the best moments in their history and sustained it which is the hardest thing to do.
"They have transformed the energy around the place, what they have created in the stadium is something special and they have been extremely successful."