When two-or-more-point grounding faults occur in the secondary circuit of a substation, they will lead to large data measurement errors in the protection, measurement, and control devices, which can easily cause protection malfunction. At present, there is a lack of an online panoramic monitoring system for the secondary circuits of substations, and it is difficult to accurately identify the faults in these secondary circuits. In order to solve this problem, this paper proposes a cloud–edge collaboration framework for the power Internet of Things (IoT), which can accurately identify faults by monitoring the secondary circuit of power grid substations with panoramic online status, reducing maintenance costs and improving overall operational efficiency. Firstly, the collection requirements of current transformer (CT) and potential transformer (PT) fault characteristics in the secondary circuit of the substation are analyzed. The platform architecture of the secondary loop panoramic monitoring system of the cloud-side cooperative substation is proposed, along with the algorithm and data wireless acquisition scheme of the edge computing, cloud computing, and cloud-side system. Furthermore, the edge computing platform and the current and voltage wireless sensors are developed. The maximum error in the accuracy test of the voltage sensor is 1.9180%, while the maximum error in the accuracy test of the current sensor is 1.3406%.