The invention provides a light-emitting diode of a vertical structure and a manufacturing method thereof. An N-GaN layer, a quantum well layer, a P-GaN layer and a first transparent conductive layer are sequentially formed on a semi-conductor substrate, a plurality of pore channels are etched, an insulating sidewall is prepared, meanwhile, an insulating layer is prepared on the first transparent conductive layer, the pore channels are filled with electrode materials so as to form Ohmic contact with the N-GaN layer, meanwhile, an electrode material layer is formed on the insulating layer, then the electrode material layer and a conductive supporting substrate are bonded, the conductive supporting substrate is the N electrode portion of a chip, the semi-conductor substrate is peeled off, etching is carried out from the N-GaN layer to the first transparent conductive layer, and ultimately a P electrode is prepared and preparation is finished. An electrode at the side different from the vertical structure side is manufactured on the same side of the chip, and the process is simplified. The point-shaped electrodes facilitate diffusion of currents of the chip under large currents so that density distribution of the currents is uniform, the light-emitting efficiency of the light-emitting diode is effectively improved, and service life of the light-emitting diode is prolonged.