Cache memory is a type of faster memory between the CPU and RAM that stores frequently accessed data to reduce memory access time. Virtual memory is a memory management technique that uses RAM and hard disk space to provide programs with virtual memory addresses that are larger than the physical RAM. Cache memory exists as a hardware component whereas virtual memory is a software and hardware concept using RAM, hard disk, and memory mappings. The key difference is that cache memory improves memory access time using actual hardware, while virtual memory allows for larger isolated memory spaces by simulating memory using RAM and disk space managed by the operating system.