The move comes a day after the Premier League champions secured the signing of Thiago Alcantara from Bayern Munich in a deal that could be worth up to £25m.
Jota's arrival at Anfield is separate to a deal which saw defender Ki-Jana Hoever moving to Wolves on a five-year contract in a transfer worth £10m, plus add-ons.
That means Liverpool's initial net spend with Wolves over the two deals is around £30m.
"It's just a really exciting moment for me and my family," Jota told Liverpool's website.
"All of my path since I was a kid and now, to join a club like Liverpool - the world champions - is just unbelievable. I just want to get started.
"It is one of the best teams in the world - the best at the moment because they are world champions. When you look at the Premier League, you always see Liverpool as one of the biggest teams in the country, so it's impossible to say no.
"So we just want to come [here], to give our best and hopefully I can become a good option for Liverpool in the future."
As for the impact he can have at Anfield, Jota added: "I think I am a team player.
"I play up front and my job is to find a way to score goals and to provide assists and that's what they can expect from me - that I will always do my best. I will always try to help the team in the best way possible.
"They [the fans] can count on me because now I am one of them and I will give my best."
The 23-year-old has been given the vacant No 20 shirt.
Jota left Molineux before kick-off against Stoke in the Carabao Cup on Thursday and was an unused substitute in Monday's 2-0 win at Sheffield United.
The Portugal international scored 26 goals in 85 appearances in all competitions for Wolves since joining from Atletico Madrid in July 2018.
However, who appeared four times for Jurgen Klopp's side, can play right wing-back, right-back and centre-back - all positions which Wolves were keen to strengthen during this transfer window.
The 18-year-old joined Liverpool from Ajax in 2018 and only signed a new long-term contract at Anfield last summer but has now joined Wolves on a permanent deal.
'Jota's versatility key for Klopp'
Sky Sports News' Kaveh Solhekol on The Transfer Show:
Jurgen Klopp has been looking for some competition for his front three and has decided to go for Jota.
Liverpool were also interested in Watford's Ismaila Sarr, but Jota is Klopp's first choice.
Klopp believes he has the required versatility because he can play anywhere along the front line and that will put some pressure on Salah, Firmino and Mane.
Analysis: How Thiago could transform Liverpool
Sky Sports' Adam Bate:
'Cover for Andrew Robertson has already arrived. Attacking depth would help. But a midfield creator could be transformative. Naby Keita brings some of those qualities, albeit slightly further forwards, but think of that midfield and one still suspects industry is valued over invention.
'It has hardly been a problem, whether it is Fabinho cracking one in from 30 yards or Jordan Henderson driving the team on to glory at home and abroad over the past 18 months. It has come to be seen as the Liverpool way. A decision to focus on the flanks. A style that works.
'Thiago is the Spanish pass master with Brazilian roots and a Barcelona upbringing. A man at home in the midfield hot house, seemingly born to work in those tight spaces.
'He averaged 82.6 completed passes per 90 minutes in the Bundesliga this past season - the most of any regular midfielder. He had a pass completion rate in excess of 90 per cent - an accuracy level that does not really reflect the range of his passing with both feet.
'Where he could help Liverpool is by moving the ball with one and two touches, opening games up against deeper defences.'
Summer transfer window - key dates and times
The summer transfer window closes at 11pm on Monday October 5 with a feast of activity lined up on Footy Legend.
A domestic-only window for deals between the Premier League and EFL then runs from October 5 and closes on Friday, October 16 at 5pm.