Hatch to cellar: How to do the hinge and edges?

Novice here. I'm putting flooring down in this old backroom and there's a door to the cellar that lifts up. I'm gonna put hydraulics on it and think I've got the handle worked out, but I have no idea how to do the hinge so it's hidden, or at least not something you stub your toe on.

Further, I hadn't thought about the bare edges of the wood, should I just leave them or is there some common way of finishing them that will be better in the long run?

Thank you in advance!

https://preview.redd.it/jnl8un08wx6h1.jpg?width=3024&format=pjpg&auto=webp&s=49e8d0b71427d2f727e80d409a5bf3a40505e0df

https://preview.redd.it/n9swfn08wx6h1.jpg?width=3024&format=pjpg&auto=webp&s=af287ab64b1f99bb6e81cb7296fea2c075dec7a0