Faded Edges
First open your image. Mine is below:
Now go up to LAYERS>NEW RASTER LAYER. Hit OK.
Click on the SELECTION TOOL from the tools palette, and create a rectangle on the edge of the image where you want it to be faded.
Now click on the FLOOD FILL TOOL, choose a color you want to be faded and fill the selected part of your image.
Go up to SELECTIONS>SELECT NONE.
Now go up to EFFECTS>BLUR>GAUSSIAN BLUR and play around the with numbers. Remember, the higher the number, the more intense the blur is going to be. Here's how mine turned out:
Note: you can also use an image with a solid background to make it easier for you to choose a color.
Here's an example:
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