For hit registration I usually just use a box collider, tag, and the onTriggerEnter2D function with a single if check to check the tag. And that works pretty well. For hit indicators, I know of a few more options. You can change the color of the sprite renderer to red or black for like half a second. You could have a sound effect, or knockback, or your artist could make you some kind of hit marker asset. Or even all of these things would work well together.