In this sense, a virtual team is one that is made up of people in different physical locations. I’ve worked on different projects that required the use of virtual teams. I’ve had a love/hate relationship with them in the past. Working in a team is not easy in general, so working in a virtual team raises the level of difficulty one notch up. By no means is it impossible, but it takes some work to make it successful.
One of the challenges is deciding on the best use of the technology platform that works best for everyone. The use of mobile technology makes it a menu of choices to pick from. Some people argue that the lack of face-to-face interaction is lost, but to that I say WebEx video, Skype video and FaceTime can take care of that. The other challenge is if the team is spread out into different time zones then that the scheduling of meetings becomes an issue.
The challenge of working in a virtual team can be an opportunity to bring in a diverse set of viewpoints and experiences that team members can contribute. I believe that as long as you have good communication skills, then working in a team, whether traditional or virtual team will not be a problem.
This HBR article gets a lot of points right in relation to virtual teams: https://hbr.org/2014/12/getting-virtual-teams-right