In today's fast‐paced society, the Internet of Things (IoT) is revolutionizing businesses by bridging the gap between the digital and physical realms. This transformative technology enables rapid changes in the way people conduct business. Its fundamental aim is to connect everything in our world—objects, individuals, locations, and processes—under a unified infrastructure, providing valuable information and control over the state of our environment. The IoT represents a novel approach to developing diverse and distributed systems, which have now evolved into a pervasive computing cloud infrastructure. However, due to limitations in computing power and storage resources dedicated to handling the vast amounts of IoT data, a cloud‐based architecture is often employed in the IoT realm. Unfortunately, this shift has introduced a range of complex security and trust concerns within the cloud‐based IoT environment. As the demand for widespread deployment of cloud‐based IoT continues to soar, significant security‐related threats have emerged, prompting numerous researchers to develop cryptographic algorithms aimed at enhancing the security of both the Cloud and IoT. This paper provides an overview of cloud‐based IoT technology and seeks to fulfill the primary objective of conducting a survey on encryption algorithms in the context of the cloud and IoT. The research delves into the strategies, challenges, and variations associated with encryption in cloud and IoT systems. Additionally, this work includes a comparative analysis of the computational complexity of these techniques.