There are many misconceptions about cholesterol. Cholesterol is actually a steroid. Steroids belong to a large and varied group of chemical compounds that are naturally produced by the body. Cholesterol is the most abundant steroid and it is used as building blocks for cell membranes, maintaining healthy cells, as an aid to digestion and in the manufacture of sexual hormones.
Cholesterol is soluble in fats, that is, it dissolves in fat.
It is also a Lipid. Lipids do not dissolve in water, alcohol, ether, or other organic solvents. This is why cholesterol is also classified as a lipid. Blood plasma is like water. Blood cannot absorb cholesterol.