Fundamental relationships exist between cloud and precipitation development and their dynamic processes. Latent heat released by cloud/precipitation formation affects cloud vertical motions, which in turn affect convective cloud development. Here, a cloud‐resolving model is used to relate cloud properties and latent heating with cloud drafts using 15‐day simulations for an oceanic and continental environment. The results show condensation, deposition, and freezing occur mainly in moderate (3–5 m s−1) to strong (>10 m s−1) updrafts, evaporation and sublimation mainly in weak (1–2 m s−1) to moderate downdrafts, and melting in moderate updrafts and downdrafts. Active updrafts cover only a small percentage of the model domain but contribute significantly to the latent heat release and are associated with large proportions of the hydrometeors. Active updrafts with vertical velocities exceeding 1 and 2 m s−1 account for more than 75% and 50%, respectively, of the condensation, deposition, and freezing in both the oceanic and continental cases. However, active downdrafts with vertical velocity magnitudes exceeding |1 m s−1| account for less than 40% and 25%, respectively, of the evaporation and sublimation. More evaporation and sublimation than condensation and deposition occur in the inactive cloud regions. Sensitivity tests are also conducted to assess the impact of model grid spacing (1,000 m vs. 250 m) and microphysical schemes (3 ice classes vs. 4 ice classes) on latent heat release and hydrometeor amount. The results show that model resolution had more impact than the microphysics on the simulated cloud properties in both cases.