Computer memory can be categorized into three types: cache memory, primary/main memory, and secondary memory. Cache memory is very fast semiconductor memory that acts as a buffer between the CPU and main memory, holding frequently used data and instructions. Main memory is the working memory that holds the data and instructions currently being processed, though it has limited capacity and is volatile. Secondary memory provides permanent storage of data on disks, CDs, DVDs, and is non-volatile but slower than main memory.